Under Which Conditions Can Researchers Claim a Causal Inference

question 59

Multiple Choice

Under which conditions can researchers claim a causal inference?

• A) concomitant variation
• B) high level of correlation between variables
• C) time order of occurrence of variables
• D) elimination of other possible causal factors
• E) a, b, and c only
• F) a, c, and d only

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Definitions:

Price of Capital

The cost of using capital resources, typically interest or rental rates paid on capital.

Units of Output

A measurement or quantification of production volume, signifying the number of units of a good or service produced.

Marginal Cost

The expenditure related to manufacturing one more unit of a product or service.

Average Fixed Cost

The total fixed costs of production divided by the quantity of output produced, showing how fixed costs change with output levels.