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.

Question

Quizplus · Accepted Answer

Correlation refers to how two variables move together in a predictable way, meaning that there is a statistical relationship between them, without necessarily implying a cause-and-effect relationship.

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