Economic Historian: The prolonged recession of the 1970s was characterized by severe instability within the national manufacturing sector. Yet, paradoxically, macroeconomic data from that era demonstrates that the national manufacturing sector, evaluated as a comprehensive whole, maintained an incredibly high rate of overall financial solvency. Therefore, it is historically inaccurate to suggest that any individual manufacturing corporation was operating on the brink of bankruptcy at that time.
Which of the following most accurately describes a flaw in the economic historian's reasoning?
- It takes for granted that a characteristic belonging to a comprehensive entity must also belong to each of its individual constituent parts.Answer
- BIt relies on an ambiguous shift in the meaning of the term 'instability' between the premise and the conclusion.
- CIt fails to consider that the macroeconomic data from the 1970s might have been systematically manipulated or incorrectly recorded.
- DIt confuses an intermediate conclusion regarding the financial solvency of the sector with the main conclusion about the causes of the recession.
- EIt draws a categorical conclusion about all manufacturing corporations based on evidence that is only sufficient to support a conclusion about most of those corporations.
Answer
The option stating that it takes for granted that a characteristic belonging to a comprehensive entity must also belong to each of its individual constituent parts.
The correct answer accurately identifies the fallacy of Division. The historian concludes that no individual corporation was near bankruptcy (a property of the parts) based solely on the fact that the manufacturing sector as a comprehensive whole was financially solvent (a property of the whole). This reasoning is fundamentally flawed because an entire sector could be highly solvent on an aggregate level if the immense wealth of a few massive corporations masks the severe insolvency of many smaller ones.
Step-by-Step Solution
Key Concept
Fallacy of Division (Part-to-Whole Reasoning)
Estimated Time:1m 45s