Someone Notices That Sunspot Activity Is High Just Prior to Recessions

question 57

Multiple Choice

Someone notices that sunspot activity is high just prior to recessions and concludes that sunspots cause recessions. This person has:

• A) confused association and causation.
• B) misunderstood the Ceteris paribus assumption.
• C) used normative economics to answer a positive question.
• D) built an untestable model.

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Definitions:

Sensory Elements

Components involved in marketing and product design that appeal to any of the five senses (sight, smell, sound, taste, touch) to influence consumer experience and behavior.

One-click Ordering

A system that allows customers to make purchases with a single click, bypassing the need for entering billing and shipping information each time.

Jeff Bezos

The founder of Amazon.com and one of the world's wealthiest individuals, known for revolutionizing online shopping and leading various technological and space exploration ventures.

Service Retailers

Businesses that provide services rather than tangible goods to customers.