Dr Archer, Who Wants to Study the Effects of Poverty

question 135

Multiple Choice

Dr. Archer, who wants to study the effects of poverty on crime, selects a group of individuals, and collects information about each individual's annual income and criminal record (or lack thereof) . Dr. Archer finds that income is negatively correlated with crime. On the basis of these findings we can conclude that

• A)as income decreases, crime increases
• B)as crime decreases, income increases
• C)low income causes crime
• D)income and crime increase together
• E)as income decreases, crime increases AND as crime decreases, income increases

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Definitions:

Linear

Relating to a straight line or a model where relationships between variables or quantities are proportional.

Purely Competitive Industry

Refers to a market structure where many firms sell identical products, entry and exit from the market are easy, and no single buyer or seller can influence the market price.

Demand Curve

This depicts how consumer demand for a product changes as the price of that product changes, illustrating the inverse relationship between price and quantity demanded.