What Is the "Reverse Causality" Problem in Determining Cause and Effect

question 154

Multiple Choice

What is the "reverse causality" problem in determining cause and effect?

• A)It is a problem that occurs when one concludes that a change in variable X caused a change in variable Y when in actual fact,it is a change in variable Z that caused a change in variable Y.
• B)It is a problem that occurs when one observes that a change in variable X caused a change in variable Y which caused a change in variable Z and concludes that a change in variable X caused a change in variable Z.
• C)It is a problem that occurs when one concludes that a change in variable X caused a change in variable Y when in actual fact,it is a change in variable Y that caused a change in variable X.
• D)It is a problem that arises when two variables are inter-connected so that a change in variable X causes a change in variable Y,and a change in variable Y causes a change in variable X.

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Definitions:

Perfectly Inelastic

A situation where the demand or supply for a good does not change in response to changes in price.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers at various prices.

Price Elasticity

The estimation of demand's reaction to the alteration of a good's price.

Midpoint Formula

A method used in geometry to find the midpoint of a line segment between two points by averaging the x and y coordinates.