Suppose Economists at the World Bank Discover a Positive Correlation

question 40

Multiple Choice

Suppose economists at the World Bank discover a positive correlation between family income and female education levels in developing countries.We can say that

• A)the correlation is inconsistent with a theory that an increase in female education levels causes an increase in family income.
• B)an increase in family income causes an increase in female education levels.
• C)an increase in female education levels causes an increase in family incomes.
• D)there is a causal relationship between family income and female education.
• E)the observed correlation is consistent with a theory that an increase in female education levels causes an increase in family income.

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Definitions:

Sales Dollars

Sales dollars refer to the total monetary value of all sales transactions made by a company over a period, without deducting any costs or expenses.

Break-Even Point

The sales level at which a business generates revenue equal to its expenses, resulting in neither profit nor loss.

Variable Costs

Financial obligations that shift depending on the level of manufacturing or sales activity.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, like lease payments and wages.