Author Question: Explain why correlation does not always imply causation. Does causation always imply positive ... (Read 149 times)

futuristic · **on:** Jun 29, 2018

Explain why correlation does not always imply causation. Does causation always imply positive correlation? Explain your answer.

What will be an ideal response?

Question 2

The table shows the PPF of an island community. Choose the best state-ment.

A. This community has enough resources to produce 2 pounds of fish and 36 pounds of berries.
B. This community cannot produce 2 pounds of fish and 36 pounds of berries because this combination is inefficient.
C. This community will waste resources if it produces 2 pounds of fish and 22 pounds of berries.
D. This community can produce 2 pounds of fish and 30 pounds of berries but this combination is inefficient.

bimper21 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

Correlation means that there is a relationship between two variables; as one variable changes, another variable changes. Causation occurs when one variable directly affects another through a cause-and-effect relationship. Correlation suggests that there is some kind of connection, but not necessarily a cause and an effect. For example, number of storks in a region might be correlated with the number of babies born in the region. But this doesn't mean that storks bring babies.
Positive correlation implies that two variables tend to move in the same direction. However, causation need not only imply positive correlation. For example, an increase in the price of bacon may cause people to buy smaller amounts of bacon. In this example, the price of bacon and the quantity of bacon purchased will show a negative correlation.

Answer to Question 2

C The production point is inside the PPF and so is inefficient.