Macroeconomics: Principles, Problems, & Policies 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0-07766-077-3
ISBN 13: 978-0-07766-077-2

Chapter 1 - Limits, Alternatives and Choices - Discussion Questions - Page 21: 11

Answer

Correlation is not causation.

Work Step by Step

Statistical observations only indicate that marriage and income are correlated, as married men typically earn more than unmarried men. However, there is not statistical evidence and proof to show that a person's marital status has a direct effect on their income. There can also be a range of confounding variables in this scenario, as aspects such as age and character traits can affect both marital status and income.
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