One Reason We May Not Make Causal Conclusions Based Only

question 28

Multiple Choice

One reason we may not make causal conclusions based only on correlational evidence is that a correlation between two variables

• A)may be zero.
• B)may be negative.
• C)does not tell us about the possible direction of causality.
• D)never involves causally related variables.

---

Definitions:

Marginal Revenue Product Schedule

This schedule outlines how the marginal revenue product (the additional revenue generated by employing one more unit of a resource) changes as the quantity of the resource employed increases, holding other factors constant.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices.

Output Per Hour

A measure of productivity calculated by dividing the total output of goods and services by the total hours worked.

Marginal Productivity

The additional output that is produced by adding one more unit of a particular input while holding all other inputs constant.