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:

Price Ceiling

A legal maximum price set below the equilibrium price, preventing sellers from charging more than this amount.

Price Floor

A government-imposed minimum price set above the equilibrium price, preventing market prices from falling below a certain level.

Shortage

The occurrence of demand for a certain product or service outpacing the supply in the marketplace.

Surplus

The amount of an asset or resource that exceeds the portion that is actively utilized; in economic context, it often refers to excess production or budgetary surplus.