Figure 2-17
Relationship Between Years of Education and Annual Income

-Refer to Figure 2-17.Senator Smith observes the graph and concludes that people who earn higher incomes attend school for more years.Senator Jones observes the graph and concludes that people who attend school for more years earn higher incomes.Who is correct?

Question

Figure 2-17
Relationship Between Years of Education and Annual Income
 
-Refer to Figure 2-17.Senator Smith observes the graph and concludes that people who earn higher incomes attend school for more years.Senator Jones observes the graph and concludes that people who attend school for more years earn higher incomes.Who is correct?

Quizplus · Accepted Answer

The graph likely shows a correlation between income and years of schooling, but it does not establish causation. The reverse causality problem means it's unclear whether higher income leads to more schooling or more schooling leads to higher income.

Figure 2-17 Relationship Between Years of Education and Annual Income