If You Know That Achievement Is Positively Correlated with Life

question 111

Multiple Choice

If you know that achievement is positively correlated with life satisfaction, then you can conclude that ____.

• A) one of two things MUST be true: either achievement causes life satisfaction OR life satisfaction causes achievement
• B) a third variable (such as commitment or passion) MUST cause both achievement and life satisfaction
• C) as achievement increases, happiness also increases
• D) the relationship between the two variables must be statistically significant

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Definitions:

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for.

Personal Income

The total amount of income received by individuals from all sources, including wages, dividends, interest, and government transfers, before any deductions.

Net Taxes

The difference between taxes paid to the government and transfer payments received from the government.

Circular Flow

An economic model that depicts how money moves through an economy between producers and consumers, illustrating the interactions between different sectors.