When Two Variables Move in the Same Direction,the Curve Relating

question 52

Multiple Choice

When two variables move in the same direction,the curve relating them is

• A)upward sloping,and we say the variables are positively related.
• B)upward sloping,and we say the variables are negatively related.
• C)downward sloping,and we say the variables are positively related.
• D)downward sloping,and we say the variables are negatively related.

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Definitions:

Factory Rent

Expenses incurred for leasing a premises to use as a manufacturing or production facility.

Prime Costs

The combined direct costs of raw materials and labor that are directly attributable to the production of a product.

Conversion Costs

The sum of direct labor and overhead costs involved in converting raw materials into finished goods.

Electricity Costs

The expenses incurred for the consumption of electricity, often classified as a variable cost in production or operations.