INOQUIZITIVE Chapter 2 Model Building and Gains from Trade P

INOQUIZITIVE Chapter 2: Model Building and Gains from Trade Page(s) 65-66 Appendix: Graphs in economics Dinesh notices that many people with gym memberships are overweight. He concludes that gym memberships make people gain weight. What is the error in Dinesh\'s thinking? Click or tap a choice to answer the question. Dinesh has mistakenly asserted a relationship between gym membership and weight problems. Dinesh has the causation backward Dinesh has mistaken correlation for causation Dinesh has mistaken a negative correlation for a positive one.

Solution

The mistake that Dinesh is making is that he has the causation backward. The actual causation is because people are overweight, they have come to the gym. But he is thinking they are overweight because of gym memberships. Hence the correct answer is (B) i.e Dinesh has the causation backwards.