When Economists Use the Term "Correlation," They Are Referring to

question 184

Multiple Choice

When economists use the term "correlation," they are referring to

• A) cause and effect relationships between variables.
• B) how two variables move together in a predictable way.
• C) positive economics.
• D) normative economics.
• E) economic policy.

---

Definitions:

Tax Passed

Occurs when the burden of a tax is shifted from the entity legally responsible for it to another party, such as consumers.

Import Quota

A regulatory measure that sets a physical limit on the quantity of goods that can be imported into a country over a specified period of time.

Tariff

A tax imposed by a government on goods and services imported from other countries, used to control trade.

International Trade

The exchange of goods and services across national borders, driven by the principle of comparative advantage.