List and Describe the Three Factors That Threaten Stability

question 201

Essay

List and describe the three factors that threaten stability.

Understand methods to mitigate historical threats to internal validity in time-series designs.

Understand the significance of treatment intervention points in time-series designs.

Recognize the importance of random assignment in experimental designs to control threats to internal validity.

Understand the limitations of designs lacking comparison groups, random assignment, or control groups and their effect on internal validity.

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Definitions:

Income Effect

The impact of income changes on the demand for goods or services by an individual or within the economy.

Substitution Effect

Describes how consumers react to a change in the price of a good by substituting it with another good that is relatively cheaper.

Income Effect

The income effect refers to the change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to substitute one good for another more or less expensive.