When Two Variables Have a Positive Correlation

question 59

Multiple Choice

When two variables have a positive 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 negative.

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Definitions:

Units Produced

The total quantity of products manufactured by a company during a specific period.

Total Variable Cost

The sum of expenses that vary directly with the level of production or sales volume; these costs increase as production increases and decrease as production decreases.

Units Sold

The total quantity of product items that a company has sold to consumers during a certain period.

Indirect Manufacturing Cost

Costs in the production process that are not directly tied to the physical production of goods, such as maintenance and utilities.