An Economist Noticed That Nations with More TV Sets Have

question 14

Multiple Choice

An economist noticed that nations with more TV sets have higher life expectancy.He established a strong positive association between length of life and number of TV sets.Describe three different possible cause-and-effect relationships that might be present.

• A)Perhaps more TV sets cause higher life expectancy,higher life expectancy causes more TV sets,or both could be caused by a lurking variable such as the wealth of the nation.
• B)There is only one cause-and-effect relationship: more TV sets cause higher life expectancy.
• C)Perhaps more TV sets cause higher life expectancy,higher life expectancy causes more TV sets,or both could be caused by a lurking variable such as the TV sets brand.
• D)There is only one cause-and-effect relationship: higher life expectancy causes more TV sets.
• E)There are only two cause-and-effect relationships: more TV sets cause higher life expectancy,or higher life expectancy causes more TV sets.

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Definitions:

Capital Market Security

Financial instruments like stocks and bonds that are traded in capital markets involving long-term investments.

Treasury Bill

Short-term government security issued at a discount from the face value and mature in a year or less, representing a safe investment.

Common Stock

A type of share or equity ownership in a company, giving holders voting rights and a share in the company's profits via dividends.

Securities Exchange Act

A U.S. law enacted in 1934, which governs the trading of securities, such as stocks and bonds, to protect investors and maintain fair and efficient markets.