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If a Researcher Finds a Correlation Between Two Variables,it Is

question 73

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If a researcher finds a correlation between two variables,it is always possible that there is some unmeasured variable out there in the world that is the true cause of the other two,and is responsible for the relationship between them.This reflects


Definitions:

Derived Demand

Demand for a good or service that arises from the demand for another good or service; for example, the demand for steel is derived from the demand for cars.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts and/or funds obtained from special financing sources.

Marginal Productivity Theory

An economic theory suggesting that the payment to each factor of production equals the added productivity that one additional unit of the factor brings to the product.

Income Distribution

How the total earnings are distributed among people or families within an economic system.

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