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Distinction Between Correlation and Causation
An economist observes that cities with higher ice cream sales also tend to have higher crime rates. Based on this strong statistical association, it is valid to conclude that increased ice cream consumption directly leads to an increase in criminal activity.
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Economics
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Introduction to Macroeconomics Course
Ch.5 Macroeconomic policy: Inflation and unemployment - The Economy 2.0 Macroeconomics @ CORE Econ
The Economy 2.0 Macroeconomics @ CORE Econ
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Application in Bloom's Taxonomy
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An economic analyst observes that in a particular city, the number of new coffee shops opened per year is strongly and positively associated with the average salary of the city's residents. The analyst concludes that opening more coffee shops will cause the average salary in the city to rise. Which of the following statements best analyzes the analyst's conclusion?
Interpreting Economic Data
An economist observes that cities with higher ice cream sales also tend to have higher crime rates. Based on this strong statistical association, it is valid to conclude that increased ice cream consumption directly leads to an increase in criminal activity.
Evaluating an Economic Claim