One Reason Why It Is Incorrect to Infer a Causal

question 156

Multiple Choice

One reason why it is incorrect to infer a causal relationship from a correlational claim is

• A) causal claims can only be made with positive correlations.
• B) the cause of the relationship may be due to a hidden variable.
• C) the lack of a control group.
• D) our intuition helps us determine if a cause-effect relationship exists.

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Definitions:

Production Possibility Frontiers

These are curves that depict the maximum potential output of a combination of two goods or services that an economy can produce with available resources.

Opportunity Cost

Forgoing the benefit of the next preferable alternative comes at a cost during decision-making.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs and production technology.

International Trade

The swapping of commodities and services among different nations.