In Which of the Following Relationships Does the Intercept Have

question 1

Multiple Choice

In which of the following relationships does the intercept have a real-world interpretation?

• A)the relationship between the change in the unemployment rate and the growth rate of real GDP ("Okun's Law")
• B)the demand for coffee and its price
• C)test scores and class-size
• D)weight and height of individuals

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount that they actually do pay.

World Price

The price of a good that prevails in the global market for internationally traded goods.

Trade Restrictions

Measures imposed by governments to limit international trade for various reasons, including protecting domestic industries.

Domestic Supply

The total amount of a product or service that is available to consumers in a domestic market.