A Randomized Experimental Model Meets Which of the Following Conditions

question 9

Multiple Choice

A randomized experimental model meets which of the following conditions for making causal statements?

• A) association due to chance
• B) association due to third variables
• C) causal order
• D) all of the above
• E) none of the above

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Definitions:

Pareto Efficient Allocation

A situation in economic theory where resources are allocated in such a way that it is impossible to make any one individual better off without making at least one individual worse off.

Pareto Optimal Allocation

A resource distribution scenario where no individual can be made better off without making at least one individual worse off.

Utility Function

A mathematical representation of how different combinations of goods or services provide levels of satisfaction or utility to an individual.

Initial Endowment

The initial allocation or distribution of resources, goods, or wealth among individuals or entities at the start of an economic experiment or model.