To Avoid Spurious Correlation,one Must Recognize That

question 103

Multiple Choice

To avoid spurious correlation,one must recognize that

• A) what is true for a part must also be true for the whole.
• B) what is true for a part is not necessarily true for the whole.
• C) because one event precedes another,the first event necessarily caused the second.
• D) because one event precedes another,the first event did not necessarily cause the second.
• E) correlation implies causation.

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Definitions:

Marginal Cost

The augmentation in total expenditure resulting from the manufacture of one more unit of a product or service.

Price

Price refers to the amount of money expected, required, or given in payment for something, representing the value exchange between buyer and seller in a market.

Kinked Demand

A demand curve that has a distinct bend or "kink" at a certain price level, reflecting different elasticity above and below that price.

Marginal Cost

The increase in cost resulting from the production of an extra unit of a good or service.