Lesson 3 Glossary
- fallacy -A hypothesis that has been proven false but is still accepted by many people because it appears to be true.
- fallacy of composition- A mistaken belief that what is good for an individual is automatically good for everyone, or what is good for everyone is good for the individual.
- post hoc fallacy (or cause-and-effect fallacy)- A mistaken belief that what occurs before some event is logically the cause of it.
- fallacy of single causation- A mistaken belief, based on oversimplification, that a particular event has one cause rather than several causes.
- opportunity cost- The value or benefit that must be given up to achieve something else. For example, by choosing to produce item A, a business gives up the benefit that it could have gained from producing item B using the same resources.