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

question 212

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 experiment 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 experiment 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.

---

Definitions:

Sensation-Seekers

Individuals who have a strong desire for experiences that are thrilling, complex, varied, and intense, often embracing risks for the sake of such experiences.

Risky Recreational Behaviors

Activities undertaken for enjoyment that involve a significant degree of risk or danger.

Drive-Reduction Theory

A theory of motivation suggesting that biological needs create internal drives that seek to be reduced by satisfying those needs.

Arousal Theory

A theory that suggests people are motivated to maintain an optimal level of arousal, neither too high nor too low.