If Whenever One Variable Increases,another Variable Also Increases,then These Two

question 263

Multiple Choice

If whenever one variable increases,another variable also increases,then these two variables are ________ related.

• A) positively
• B) negatively
• C) inversely
• D) cross-sectionally
• E) trend-line

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Definitions:

Capital

Resources, such as funds, equipment, and buildings, that are used in the production of goods and services.

Labor

Refers to the human effort, both physical and mental, used in the production of goods and services.

Isocost Line

A graph that shows all combinations of capital and labor that can be purchased for a given total cost.

Price of Capital

The cost of using capital goods in production, often reflected in interest rates or rental costs.