Interpreting Economic Data

An economic analyst observes that in a particular city, the number of public parks is positively associated with the average price of housing; cities with more parks tend to have higher housing prices. Based solely on this statistical association, what is the most sound conclusion?

Evaluating a Policy Proposal

An economist observes that during the summer months, ice cream sales and crime rates both increase significantly. This strong positive statistical relationship is sufficient evidence to conclude that an increase in ice cream consumption causes an increase in crime.

Analyzing Economic Relationships

Match each scenario with the most accurate description of the relationship between the two observed variables.

Interpreting City Crime Data

Evaluating a Marketing Campaign's Success

An economist observes that two economic variables consistently move in the same direction. To determine if one variable is causing the change in the other, they must follow a structured process. Arrange the following steps in the logical order an economist would take to move from observing this initial relationship to potentially establishing a causal link.

An economic study reveals a strong positive statistical relationship between the number of coffee shops in a city and the city's overall productivity. Concluding that opening more coffee shops will directly cause an increase in productivity ignores the possibility of a/an ______, such as a growing, educated workforce that both demands more coffee and contributes to higher productivity.