Chapter 2 Model Building and Gains from Trade e Pages 6566 A

Chapter 2: Model Building and Gains from Trade e Page(s) 65-66 Appendix: Each box below describes a relationship between two variables that has been interpreted incorrectly. Apply the appropriate label to each mistake. Drag each item on the left to its matching item on the right. Note that every item may not have a match, while some items may have more than one match. People become tired when they wear athletic clothes. People who visit the dentist are more likely to get a cavity Drinking a lot of water leads to sunburn. Cars that mechanics work on regularly are omitted variable reverse causation more likely to break down.

Solution

(1) People become tired when they wear athletic clothes - No relationship

(2) People who visit dentist are likely to get cavity - Reverse causation

(3) Drinking lot of water causes sunburn - No relationship

(4) Cars that mechanics work on are more likely to break down - Reverse causation