If an Increase in One Variable Is Not Associated with Any

question 140

Multiple Choice

If an increase in one variable is not associated with any consistent increase or decrease in a second variable, then the correlation between the two variables is

• A) positive.
• B) negative.
• C) zero.
• D) uncertain.

---

Definitions:

MRTS

Marginal Rate of Technical Substitution, indicating how much of one input can be reduced when one more unit of another input is used, keeping output constant.

MRTS

Marginal Rate of Technical Substitution; the rate at which one input can be reduced for every increase in another input while maintaining the same level of output.

Capital

Financial assets or the financial value of assets, such as cash and other tangible assets, used in operations to generate income or profit.

Labor

Work, especially physical, manual or hard work, performed by people in exchange for payment.