You Observe in the Data That Two Variables Move Together

question 1

Multiple Choice

You observe in the data that two variables move together.However,since you'd like to know whether a movement in one variable causes movement in the other,you must solve a(n) :

• A) social efficiency maximization problem.
• B) social welfare maximization problem.
• C) identification problem.
• D) model misspecification problem.

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Definitions:

Proved Reserves

Quantities of natural resources, such as oil or natural gas, that geological and engineering data demonstrate with reasonable certainty to be recoverable under existing economic and operating conditions.

Titanium

A strong, lightweight, corrosion-resistant metal with significant usage in aerospace, medical devices, and consumer products.

Market Price

The ongoing price for buying or selling a service or asset at the moment.

Crude Oil

A naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials that can be refined to produce usable products such as gasoline.