Figure 4.26 associates an increase in secondary-school enrolment from 40% to 80% with income per head rising from roughly USD 500 to USD 7,000 along the regression line. Which inference is justified?

Question

Answer

Increasing enrolment by 40 percentage points will causally raise any country’s income fourteenfold.

Answer

Enrolment and income are negatively correlated.

Answer

Every country in the sample lies exactly on the regression line.

Answer

There is a strong positive cross-country association, but the figure alone cannot establish its direction of causality.

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Figure 4.26 associates an increase in secondary-school enrolment from 40% to 80%...

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