Which of the following is true?
A)Virtually all theories in economics are expressed using a ceteris paribus ("let everything else be equal" or "holding everything else constant") assumption.
B)The fallacy of composition is that, even if something is true for an individual, it is not necessarily true for many individuals as a group.
C)One must always be careful not to confuse correlation with causation.
D)All of the above are true.

Question

Which of the following is true?
A)​Virtually all theories in economics are expressed using a ceteris paribus ("let everything else be equal" or "holding everything else constant") assumption.
B)​The fallacy of composition is that, even if something is true for an individual, it is not necessarily true for many individuals as a group.
C)​One must always be careful not to confuse correlation with causation.
D)​All of the above are true.

Quizplus · Accepted Answer

All of the statements A, B, and C are true. Economic theories often rely on the ceteris paribus assumption, the fallacy of composition highlights the distinction between individual and group behavior, and correlation does not necessarily imply causation.

Which of the Following Is True