Which Statement Is CORRECT

question 233

Multiple Choice

Which statement is CORRECT?

• A) "Correlation" and "causation" are synonyms.
• B) Shortly after a new president takes office, the unemployment rate goes down. One must conclude that the new president's economic policies are responsible for the economic upturn.
• C) The fact that two variables are correlated with each other does not mean that one causes the other.
• D) If two variables move together, then they are causally related.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or the volume of services provided.

Special Order

A one-time order that is not normally part of the company's standard operations.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenues.

Unit Variable Costs

The variable costs incurred to produce a single unit of product.