A Psychologist Notes That There Is a Correlation Between Physical

question 163

Multiple Choice

A psychologist notes that there is a correlation between physical health and the number of vacations that a person takes.People who take more vacations tend to have better physical health.After thinking about this result,you realize that this association may be due to a third factor: income.People with more income can afford more vacations and can afford better health care.Your explanation for this is most consistent with which limitation of correlational research?

• A)the bidirectional causality problem
• B)the third variable problem
• C)the placebo effect
• D)experimenter expectancy effects

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Definitions:

Pure Rent

The return to any factor of production that is in fixed supply.

Fixed Supply

A condition where the quantity of a particular good, service, or resource does not change, regardless of the price.

MRP

Marginal Revenue Product, which refers to the additional revenue generated from employing one more unit of a resource.

Perfectly Elastic

A situation in which the demand or supply for a good or service is infinitely responsive to changes in price.