A Correlation of

question 6

Multiple Choice

A correlation of .5 would produce a scatterplot in which the slope:

• A)Is downwards (from the bottom right corner to the top left corner of the graph).
• B)Is flat (horizontal).
• C)Is upwards (from the bottom left corner to the top right corner of the graph).
• D)Is vertical.

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Definitions:

Long Run

In economics, the Long Run is a period during which all factors of production and costs are variable, allowing for full industry adjustment to changes.

Per-worker Production Function

A mathematical representation showing how the amount of output produced per worker varies with the amount of capital or other inputs used per worker.

Quantity of Capital

The total assets, both physical (such as machinery and buildings) and financial, that individuals or businesses use to produce goods and services.

Outward Rotation

An expansion of the production possibilities frontier, indicating an economy's increased capacity to produce goods and services.