Discuss the Relative Advantages and Disadvantages of the Correlational Method

question 53

Essay

Discuss the relative advantages and disadvantages of the correlational method versus the experimental method.

---

Definitions:

Government Intervention

Government intervention involves actions taken by a government to affect the economy, which can include regulations, subsidies, tariffs, and monetary policies.

Externality

A consequence of an economic activity that is experienced by unrelated third parties; it can be either positive or negative.

Efficient Allocation

An optimal distribution of resources in an economy where it is not possible to make someone better off without making someone else worse off.

Resources

Assets, materials, and inputs needed to produce goods and services in an economy.