In a Simple Regression Analysis (Where Y Is a Dependent

question 90

Multiple Choice

In a simple regression analysis (where y is a dependent and x an independent variable) , if the y intercept is positive, then

• A)there is a positive correlation between x and y
• B)there is a negative correlation between x and y
• C)if x is increased, y must also increase
• D)None of these answers is correct.

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Definitions:

Producer Surplus

The imbalance between the desired compensation by producers for a good or service and the real income they secure.

Binding Price Ceiling

A government-imposed limit on the price of a commodity or service that is set below the market equilibrium price, causing a shortage.

Binding Price Floor

A government-imposed price control set above the equilibrium price, causing a surplus by forcing the price to be higher than what the market would naturally set.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is not achievable, typically resulting from taxes or price controls.