For a Causal Relationship to Exist There Must Be Evidence

question 20

Multiple Choice

For a causal relationship to exist there must be evidence

• A)of an empirical correlation between the variables.
• B)that one variable precedes the other in time.
• C)that a third variable did not cause the changes observed in the first two variables.
• D)that one variable precedes the other in time and that the two variables are correlated.
• E)that one variable precedes the other in time, that the two variables are correlated and that this relationship is not spurious.

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Definitions:

Relative

A person connected to another or others by blood or marriage, or a concept that is considered in relation or proportion to something else.

Cost-benefit Analysis

A systematic approach to estimate the strengths and weaknesses of alternatives in terms of their costs and benefits, often used in decision making and project evaluations.

Economic Efficiency

The optimal allocation of resources to maximize the production of goods and services.

Marginal Happiness

The additional satisfaction or utility that a person gains from receiving or consuming one more unit of a good or service.