When Two Variables Have a Negative Correlation

question 1

Multiple Choice

When two variables have a negative correlation,

• A)they tend to move in opposite directions.
• B)they tend to move in the same direction.
• C)one variable will move while the other remains constant.
• D)the variables' values are never positive.

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Definitions:

Circular-Flow Diagram

A diagrammatic representation illustrating the flow of economic resources through various markets, connecting households with firms.

Factors Of Production

Factors employed in the creation of goods or services with the aim of generating economic profit encompass land, labor, capital, and entrepreneurship.

Circular-Flow Diagram

A model that illustrates the movement of resources, goods, services, and money between households and firms in an economy.

Factors Of Production

The resources used in the production of goods and services, typically classified into four groups: land, labor, capital, and entrepreneurship.