Determine Whether the Stated Causal Connection Is Valid or Not

question 29

Multiple Choice

Determine whether the stated causal connection is valid or not valid.
-The fuel economy of a car is affected by the car's type of upholstery.

• A)Valid
• B)Not valid

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Definitions:

Socially Efficient

A state in which a market or economy allocates resources in a way that maximizes the benefit to society as a whole, considering both private and external effects.

Marginal Cost

The increment in overall expenditure that comes from the production of an extra unit of a product or service.

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and products that are similar enough to be considered substitutes.

Legislation Limits

Restrictions or caps established by laws or regulatory bodies that aim to control or regulate certain activities or behaviors.