What Is the "Omitted Variable" Problem in Determining Cause and Effect

question 212

Multiple Choice

What is the "omitted variable" problem in determining cause and effect?

• A)It is a problem that arises when an insignificant variable is given too much weight in an economic analysis leading to skewed conclusions about cause and effect.
• B)It is a problem that arises when a significant variable is not given enough weight in an economic experiment leading to skewed conclusions about cause and effect.
• C)It is a problem that arises when an insignificant economic variable that should have been omitted is included in an economic experiment leading to false conclusions about cause and effect.
• D)It is a problem that arises when an economic variable that affects other variables is omitted from an analysis and its omission leads to false conclusions about cause and effect.

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Definitions:

Short-Term Working Memory

A limited-capacity cognitive framework that temporarily preserves information for processing activities.

Episodic Memory

Episodic memory is the type of long-term, declarative memory that stores personal experiences and events, including the contexts and emotions associated with them.

Consciously Recalling

The deliberate process of bringing memories or information into awareness, an act of memory retrieval.

Procedural Memory

A type of long-term memory that involves the unconscious memory of skills and how to perform tasks.