A basic principle in economics is that ________ does not necessarily imply ________.
A) correlation; causation
B) correlation; significance
C) causation; correlation
D) A and C only

Question

Quizplus · Accepted Answer

Just because two variables are correlated (or related) does not mean that one causes the other. There could be other underlying factors or variables that are influencing the relationship between the two variables. Therefore, correlation does not necessarily imply causation.

A Basic Principle in Economics Is That ________ Does Not