What is a causal relationship?
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Short Answer Questions. You should limit your response to one paragraph.
2. Is correlation identical to the causal relationship? Why do we want to determine if there is a causal relationship? What are the challenges in identifying a causal relationship?
A hypothesis in an economic model:
a. is tested before accepting it
b. shows a causal relationship
c. can be correct or incorrect
d. None of the above
For decades, labor economists have studied the positive relationship between income and education levels. In a fantasy world where we could run any experiment we wanted, how might we determine the causal impact of education on lifetime income?