I am trying to decipher the difference between the following two statements:
If $ A \in B $ and $ B \subseteq C $ then $ A \in C $.
vs.
If $ A \in B $ and $ B \subseteq C $ then $ A \subseteq C $.
I think the first statement is the true statement and the 2nd is false because of $ A \in B $ not $A \subseteq B $
Am I on the right track? How would I give a simple counter example to show the statement is false?
That's right. That is pretty much the definition of a subset.
For the second statement consider
$A:=\{1\}$, $B:=\{\{1\},2\}$ and $C:=\{\{1\},2,3\}$.
Then $A\in B$, $B\subseteq C$, but $A\not\subseteq C$, since $1\notin C$.