When Economists Use the Term "Correlation," They Are Referring to

question 184

Multiple Choice

When economists use the term "correlation," they are referring to

• A) cause and effect relationships between variables.
• B) how two variables move together in a predictable way.
• C) positive economics.
• D) normative economics.
• E) economic policy.

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Definitions:

Corporate Sector

Refers to the segment of an economy comprised of private and publicly traded corporations, involved in commercial and industrial activities.

Noncorporate Sector

Parts of the economy that are not incorporated as businesses, including households, sole proprietorships, and some partnerships.

Excess Burden

The amount by which the burden of a tax exceeds the total revenue collected. Also called deadweight loss.

Tax Revenue

The revenue collected by governments from taxes.