Concepts of correlation and causation

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1. Assume the quantity of baseball bats sold and the number of street crimes have both been increasing over the last 10 years. Draw a graph showing their relationship. Use these two events to highlight the difference between the concepts of correlation and causation.

2. The government has received the following advice from economists, "Decreasing business tax should be a major priority of any government and a youth wage subsidy of 25 percent will reduce youth unemployment by 4 percent." Identify and explain the two types of economic statements in the advice provided to the government.

Reference no: EM133065034

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