Answer:
(Capitalism)
is the economic system whereby individuals own most of the businesses
Explanation:
Answer:
In economics, market failure is a situation in which the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss. and minimum wage is a factor of this
Explanation:
In economics, market failure is a situation in which the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss. and minimum wage is a factor of this
Answer: He did not identify a spurious relationship.
A spurious relationship is one where two variables are not causally connected to each other, but may be inferred that they are because of their simultaneous appearance and a similar behaviour. These two variables are only linked with each other by coincidence, or through a third variable.
In this case, the mayor assumes that the implementation of the new regulations caused the crime rate to go down, when in fact there is a third variable (weather) that was the true cause.
In other words, the mayor equated correlation with causation. This is a common mistake in economics due to the inability of economists to perform experiments, having to rely solely on statistical analysis. In order to be aware of this mistake, it is good to remember the motto "<u>correlation is not causation</u>."
