(Last Word)Which of the following has to do with the problem of distinguishing cause and effect in economic reasoning?
A) The law of large numbers.
B) The law of averages.
C) The post hoc,ergo propter hoc fallacy.
D) The fallacy of composition.

Question

Quizplus · Accepted Answer

The post hoc, ergo propter hoc fallacy refers to the logical error of assuming that because one event follows another, it must have been caused by it. In economic reasoning, it can be challenging to distinguish between cause and effect, particularly when dealing with complex systems or when there are multiple factors at play. Failing to recognize this fallacy can lead to incorrect conclusions and flawed economic policies. The law of large numbers and the law of averages are statistical concepts that have to do with probability and sampling, and the fallacy of composition refers to assuming that what is true for a part is true for the whole, neither of which are directly relevant to the problem of distinguishing cause and effect in economic reasoning.

(Last Word)Which of the Following Has to Do with the Problem