Suppose We Are Considering the Relationship Between Two Variables Y

question 81

Multiple Choice

Suppose we are considering the relationship between two variables y and x. y is measured on the y-axis and x is measured on the x-axis, and the relationship between then is a straight line. Suppose that the slope of the line is greater than 1. This slope means that

• A) a change in x is associated with a bigger change in y.
• B) a change in x is associated with a smaller change in y.
• C) a change in x is associated with no change in y.
• D) a change in x is associated with an equal change in y.

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Definitions:

Predetermined

Established in advance or determined beforehand.

Lump-Sum Amounts

Single payments made for a group of items or services rather than individual transactions.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent and salaries.

Variable Costs

Expenses that fluctuate directly with changes in production or service levels.