What Is the 'Omitted Variable' Problem in Determining Cause and Effect

question 139

Multiple Choice

What is the 'omitted variable' problem in determining cause and effect?

• A)It is a problem that arises when an insignificant variable is given too much weight in an economic analysis, leading to skewed conclusions about cause and effect.
• B)It is a problem that arises when a significant variable is not given enough weight in an economic analysis, leading to skewed conclusions about cause and effect.
• C)It is a problem that arises when an insignificant economic variable that should have been omitted is included in an economic analysis, leading to false conclusions about cause and effect.
• D)It is a problem that arises when an economic variable that affects other variables is omitted from an analysis, and its omission leads to false conclusions about cause and effect.

Acknowledge the importance of designing and tracking the effectiveness of compensation programs.

Comprehend the role and impact of both extrinsic and intrinsic rewards in motivating employees.

Understand the significance and scope of essential skills training to employee performance and organizational success.

Identify the types and content of training most prevalent in Canadian organizations and their purposes.

---

Definitions:

Charles River

A significant river in Massachusetts, running through cities like Boston and Cambridge, and historically important for its role in the development and industrialization of the area.

Roger Taney

The fifth Chief Justice of the United States, serving from 1836 to 1864, best known for delivering the majority opinion in the Dred Scott v. Sandford case, which exacerbated sectional tensions leading to the Civil War.

Transportation and Prosperity

The phenomenon where advancements in transportation infrastructures, such as roads, railways, and ports, significantly contribute to economic growth and the overall prosperity of a region.

Corporations

Entities created by law that have a distinct existence separate from their owners, capable of performing legal actions.