Two Variables Are Said to Be Positively Correlated If Their

question 90

Multiple Choice

Two variables are said to be positively correlated if their values

• A) are always positive.
• B) only increase but never decrease.
• C) tend to move in the same direction.
• D) tend to move in opposite directions.

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Definitions:

Production Function

An equation that describes the relationship between inputs and the maximum output that can be produced.

Slope

The rate at which a line rises or falls, indicating the steepness of a line on a graph, often representing change in variables in economics.

Isoquants

Curves that represent combinations of different inputs that produce the same level of output in production theory.

Production Function

A production function describes the relationship between inputs (like labor and capital) and the output that can be achieved with those inputs, illustrating the maximum output possible.