Alfonso has noticed that increases in unemployment insurance claims are associated with recessions,and therefore he advocates limits on unemployment insurance so as to prevent recessions.Mary has noticed that most drug addicts once attended schools,and therefore she advocates getting rid of schools so as to prevent drug addiction.
A)The reasoning of both Alfonso and Mary suffers from the omitted variable problem.
B)The reasoning of both Alfonso and Mary suffers from the reverse causality problem.
C)Alfonso's reasoning suffers from the reverse causality problem,and Mary's reasoning suffers from the omitted variable problem.
D)Mary's reasoning suffers from the reverse causality problem,and Alfonso's reasoning suffers from the omitted variable problem.

Question

Quizplus · Accepted Answer

Both Alfonso and Mary are incorrectly assuming a direct causal relationship without considering other factors that could be influencing the observed associations. This is an example of the omitted variable problem.

Alfonso Has Noticed That Increases in Unemployment Insurance Claims Are