(Last Word) The post hoc fallacy and the correlation problem both relate to
A) the calculation of marginal costs and marginal benefits of any economic activity.
B) the issue of determining causation.
C) the frequent inability of households and businesses to behave rationally.
D) the trade-off problem associated with competing goals.

Question

Quizplus · Accepted Answer

The post hoc fallacy refers to the error of assuming that because one event happened before another event, it caused the second event. This relates to the issue of determining causation. Similarly, the correlation problem arises when two variables are correlated, but it is unclear whether one causes the other, or they are both caused by some third factor. Therefore, both fallacies relate to the challenge of establishing causation.

(Last Word) the Post Hoc Fallacy and the Correlation Problem