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Economics for Today 9th Edition by Irvin Tucker
Edition 9ISBN: 978-1305507111Economics for Today 9th Edition by Irvin Tucker
Edition 9ISBN: 978-1305507111 Exercise 2
An economist notices that sunspot activity is high just prior to recessions and concludes that sunspots cause recessions. The economist has
A) confused association with causation.
B) misunderstood the ceteris paribus assumption.
C) used normative economics to answer a positive question.
D) built an untestable model.
A) confused association with causation.
B) misunderstood the ceteris paribus assumption.
C) used normative economics to answer a positive question.
D) built an untestable model.
Explanation
Verified
Verified
Correct answer is 'A'.
The economist has failed in choosing an appropriate variable. He is confused in setting the right associative and causative variable for recession.
The economist has failed in choosing an appropriate variable. He is confused in setting the right associative and causative variable for recession.
Economics for Today 9th Edition by Irvin Tucker
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