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Your textbook describes the research by Diener and Seligman exploring factors related to happiness. They found that happier students spent more time socializing with people and had more satisfying relationships compared to unhappy undergraduates. They did not find a relationship between levels of happiness and amount of money individuals had. Explain how this is a correlational study. Using this study, also explain why cause and effect cannot be determined from correlational designs due to: 1) the bidirectionality problem, and 2) the third variable problem.
Domestic Producers
Refers to manufacturers and suppliers that create goods and services within a country's borders, contributing to its economy.
Domestic Consumers
Individuals or households within a country that purchase goods and services for personal use, as opposed to businesses or foreign buyers.
Tariff
A tax imposed by a government on imported goods or services to protect domestic industries or generate revenue.
Infant Industry
A new or emerging industry that may be protected by the government from international competition to allow it to grow.
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