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:

Habit

A repetitive behavior that an individual performs regularly, often unconsciously.

Frequency

The rate at which something occurs or is repeated over a particular period of time or in a given sample.

Stop Signal Task

A psychological test used to measure an individual's ability to inhibit a response that has already been initiated.

Attention-Deficit Disorder (ADD)

A neurological disorder characterized by a pattern of inattention and/or impulsivity that interferes with functioning or development.