As Gas Prices Increase, We See a Decline in the Number

question 78

Multiple Choice

As gas prices increase, we see a decline in the number of travelers on the highway.This is an example of a __________ correlation.

• A) negative
• B) positive
• C) perfect
• D) zero

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Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor of production.

Marginal Revenue Product

The additional revenue a firm generates by employing one more unit of input, such as labor or capital.

Perfectly Competitive Market

A market characterized by a high level of competition, where no single buyer or seller can influence prices and products are homogeneous.

Marginal Productivity Principle

An economic principle stating that employers will pay a wage equal to the additional value generated by the last unit of labor hired.