Illusory Correlation Refers to

question 434

Multiple Choice

Illusory correlation refers to

• A)the perception that two negatively correlated variables are positively correlated.
• B)the perception of a correlation where there is none.
• C)an insignificant correlation.
• D)a correlation that equals -1.0.

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Definitions:

Downward Trend

Describes a situation where there is a consistent decline in the value or level of a financial instrument, market index, or economic performance over time.

Discouraged Workers

Individuals not looking for work because they believe no jobs are available for them.

Officially Unemployed

Officially unemployed refers to individuals who are without a job, actively seeking work, and currently available to take up employment.

Fully Employed Economy

A situation where all available labor resources are being used in the most economically efficient way, with minimal unemployment.