Which Correlation Coefficient Below Suggests the Strongest Relationship Between Two

question 10

Multiple Choice

Which correlation coefficient below suggests the strongest relationship between two variables?

• A) .65
• B) .05
• C) -.72
• D) .50

Identify the effects of changes in market conditions (e.g., supply and demand elasticity, market supply shifts) on monopsony outcomes.

Examine regulatory effects and antitrust laws on monopolies and their impact on pricing and competition.

Analyze the dynamics of monopoly pricing, including demand elasticity and marginal cost considerations.

Assess the impact of external factors (e.g., taxes, market entry) on monopoly and monopsony pricing strategies.

---

Definitions:

Discretionary Policy

Economic policies based on the judgment of policymakers rather than set by predefined rules.

Corrective Policy

Corrective Policy refers to government actions taken to fix imperfections in the market, aiming to improve economic efficiency and promote fairness.

Economy

A system by which goods and services are produced, distributed, and consumed within a society or geographical area.

Government

The organized system or group of people governing an organized community, often a state, managing its public policy and affairs.