If rain dancing is associated with rain, does that necessarily mean rain dancing causes rain?
A) No. This is an example of a failure to properly employ the ceteris paribus assumption.
B) If it rains after individuals have engaged in rain dancing then there is certainly causation at work.
C) No. This is an example of the fallacy of composition.
D) No. Two variables may be correlated without one necessarily causing the other.
E) No. This is an example of a failure to understand the difference between positive and normative economic analysis.
Correct Answer:
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