If Two Variables Have a Correlation of +1.00,then

question 57

Multiple Choice

If two variables have a correlation of +1.00,then

• A) a perfect negative relationship exists between them.
• B) a perfect positive relationship exists between them.
• C) a weak relationship exists between them.
• D) it is not possible to tell the type of relationship that exists between them.

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Definitions:

Gain In Producer Surplus

An increase in the difference between what producers are willing to accept for a good versus what they actually receive.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total net benefit to society from the production and consumption of a good or service.

Chocolate Market

The economic marketplace that encompasses the production, distribution, and sale of chocolate products.

Producer Surplus

The gap between the price at which suppliers are prepared to offer a product and the actual amount they get for it.