Examlex
Which characteristic is necessary for an extraneous variable to become a confounding variable?
Labor-Leisure Tradeoff
The balance individuals must find between time spent working, which earns income, and time spent enjoying leisure activities.
Substitution Effect
The change in consumption resulting from a change in the relative prices of goods, prompting consumers to replace more expensive items with less costly alternatives.
Income Effect
The shift in income for an individual or the economy, and its influence on the demand for a specific good or service.
Wages Increase
The act or occurrence of raising the amount of money that workers are paid for their labor.
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