If We Find a High Correlation Between Variables X and Y,we

question 118

Multiple Choice

If we find a high correlation between variables X and Y,we can conclude _____.

• A)X causes Y
• B)Y causes X
• C)X and Y have the same cause
• D)X and Y systematically vary together

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Definitions:

Marginal Expenditure

Additional cost of buying one more unit of a good.

Factor of Production

Resource inputs used in the production of goods and services, typically categorized into land, labor, capital, and sometimes entrepreneurship.

Marginal Revenue Product

The additional revenue generated from using an additional unit of a resource or input.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor of production, holding all other inputs constant.