A person observes that consumer prices often fall when a nation experiences economic growth. The person then concludes that falling consumer prices lead to economic growth. This would be an example of
A) the fallacy of composition.
B) biases.
C) confusing correlation and causation.
D) the use of loaded terminology.

Question

Quizplus · Accepted Answer

The person is confusing correlation (the relationship between falling consumer prices and economic growth) with causation (the idea that falling consumer prices cause economic growth). Just because two things happen at the same time does not mean that one caused the other.

A Person Observes That Consumer Prices Often Fall When a Nation