Smaller class sizes are correlated with better educational outcomes for primary school children, such as higher test scores. This could be due to a simple correlation, as smaller class size is associated with but does not necessarily cause higher achievement. Alternatively, the relationship may be causal, as smaller class sizes allow for more individualized attention from teachers, easier student participation, and better identification of talents - thereby directly improving educational quality and outcomes.

1. "Economic research shows that primary school children in classes of smaller size
have better educational achievements (such as higher test scores) than children in
bigger classes. Provide two different narratives, one that explains the above relation
as a simple correlation, one that is based on a causal effect."
Your answer should be short, around 10-15 lines max. Try to be concise and clear.
Your work must be typed (no handwritten notes).
The two narratives/ hypothetical scenarios are as follows:-
1) When one looks at the above data one may visualize a negative linear relationship
between class size and educational achievements. ( class-size on x axis and
educational achievements on y) This may suggest that more the class size, lesser the
educational achievements. However, this simple model does not take into countless
other factors such as Study hours, work environment and level of financial support.
It veers into a ceterus paribus understanding into a scenario where other factors are
deemed constant and counter-factuals are ignored. Hence, this is just a mere co-
relation and not influenced substantively by any cause
2) To understand the dynamics of middle and high school, it is important to consider
class-size. The basic fact about the quality of education in public schools with larger
number of children vs quality of education in private schools with lesser children
shows that quality education is provided in smaller environments. Furthermore,
smaller class sizes allow children to receive individualized attention, an easier
opportunity to participate and express their ideas. Not only this, smaller class sizes
allow teachers and the management to better and easily identify talents to be
nurtured I the future. Hence, one can say that the economic research is backed by
strong casual effect.