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The fallacy of composition is an informal fallacy that arises when one infers that something is true of the whole from the fact that it is true of some part of the whole. A trivial example might be: "This tire is made of rubber; therefore, the vehicle of which it is a part is also made of rubber." This is fallacious, because vehicles are made ...
The paradox of thrift is an example of the fallacy of composition, the idea that what is true of the parts must always be true of the whole. The narrow claim transparently contradicts the fallacy, and the broad one does so by implication, because while individual thrift is generally averred to be good for the individual, the paradox of thrift ...
The parable seeks to show how opportunity costs, as well as the law of unintended consequences, affect economic activity in ways that are unseen or ignored. The belief that destruction is good for the economy is consequently known as the broken window fallacy or glazier's fallacy .
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Economics. The Cambridge capital controversy, sometimes called " the capital controversy " [1] or " the two Cambridges debate ", [2] was a dispute between proponents of two differing theoretical and mathematical positions in economics that started in the 1950s and lasted well into the 1960s. The debate concerned the nature and role of capital ...
List of paradoxes. Outline of public relations – Overview of and topical guide to public relations. Map–territory relation – Relationship between an object and a representation of that object (confusing map with territory, menu with meal) Mathematical fallacy – Certain type of mistaken proof.
A faulty generalization is an informal fallacy wherein a conclusion is drawn about all or many instances of a phenomenon on the basis of one or a few instances of that phenomenon. It is similar to a proof by example in mathematics. [1] It is an example of jumping to conclusions. [2] For example, one may generalize about all people or all ...
Hartley, however, finds these reasons for representative agent modelling unconvincing. Kirman [2] too, is critical of the representative agent approach in economics. Because representative agent models simply ignore valid aggregation concerns, they sometimes commit the so-called fallacy of composition. He provides an example in which the ...