Perceiving a Correlation Between Two Variables When None Exists Refers

question 18

Multiple Choice

Perceiving a correlation between two variables when none exists refers to

• A)the correlation versus causation fallacy.
• B)the confirmation bias.
• C)the bidirectionality problem.
• D)an illusory correlation.

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Definitions:

Output

Output is the total amount of goods and services produced by an economy or business over a set period, quantifying productivity and economic activity.

Short Run

A period in economics where at least one input (e.g., capital) is fixed, focusing on immediate effects rather than long-term outcomes.

Resources

A broad term for the assets, materials, and inputs used to produce goods and services, including natural, human, and capital resources.

Variable Cost

A cost that changes in proportion to the level of activity or volume of output in a business.