Someone Notices That Sunspot Activity Is High Just Prior to Recessions

question 162

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.

---

Definitions:

Full-time Employees

Workers who are considered to be employed on a full-time basis, typically working a minimum number of hours defined by their employer or by laws.

Preferred Provider Organization (PPO)

An organization of physicians who network together to offer discounts to purchasers of health care insurance.

Indemnity-type Insurance

Insurance that compensates for losses or damages rather than providing services.

Industrial Injury

An injury or illness that occurs as a result of work or working conditions in an industrial environment.