The Relationship Between Two Variables That Move in Opposite Directions

question 117

Multiple Choice

The relationship between two variables that move in opposite directions is shown graphically by a line that is

• A)relatively steep.
• B)positively sloped.
• C)relatively flat.
• D)curved.
• E)negatively sloped.

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Definitions:

Variable Costs

Outgoings that are contingent upon the scale of production operations.

Fixed Costs

These are expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Required Return

The minimum rate of return an investor expects to achieve by investing in a particular asset.

Initial Investment

The upfront sum of money required to start a project, purchase an asset, or invest in a business venture.