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5-People confuse correlation with causation because correlation means that: two events occur together. Since the two often occur together, people often believe that one causes the other. the other. most events occur together. Since most events occur together, people often believe that events cannot be predicted most events occur together. Since most events occur together, people often believe that events can beYou may have seen TV advertisements for products or programs that claim to teach a surefire way to make millions on the stock market. Applying the Why isnt someone already doing it? test to this situation: A. everyone who can do this will. B. Only people who understand the stock market can benefit from this. C. more ads are needed to spread the word. D. if there was a way to do this, everyone would be rich. An incentive: A. B. c. D. means that scarcity is not an issue. changes sunk costs of actions. modifies behavior by changing tradeoffs. cannot change opportunity costs.

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1. People confuse correlation with causation because correlation means that two events occur together. Since the two events occur together , people often believes that one causes the other. Hence, option(A) is correct.

2. Only people who understand the stock market can benefit from this . Hence, option(B) is correct.

3. An incentive modifies behavior by changing tradeoffs . Hence, option(C) is correct.

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