According to the Positivity Ratio, What Is the Optimal Ratio

question 27

Multiple Choice

According to the positivity ratio, what is the optimal ratio of positive to negative events that an individual needs to experience in order to flourish?

• A) 1 positive to 3 negative events
• B) 1 positive to 6 negative events
• C) 3 positive to 1 negative events
• D) 6 positive to 1 negative events

---

Definitions:

Money Supply Curve

A graphical representation showing the relationship between the quantity of money in the economy and the level of prices.

Inverse Relationship

A situation where two variables move in opposite directions, meaning when one variable increases, the other decreases, and vice versa.

Alban William Phillips

Alban William Phillips was a New Zealand economist best known for the Phillips Curve, which suggests a historical inverse relationship between rates of unemployment and corresponding rates of inflation.

Phillips Curve

An economic theory suggesting an inverse relationship between rates of unemployment and corresponding rates of inflation, indicating trade-offs between these two economic variables.