What are the three categories of correlation? Illustrate with real life examples
What will be an ideal response?
Correlation can be divided into three categories. These are:
a) Positive correlation that implies that two variables tend to move in the same direction. For example, when income increases, consumption increases.
b) Negative correlation that implies that two variables tend to move in the opposite direction. For example, when people have more professional training they are less likely to be unemployed.
c) Zero correlation which implies that there is no relationship between two variables. For example, the amount of air pollution in India is likely to have no relationship with the pollution control measures adopted in the U.S.
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While studying with your friend, your friend states, "Our leisure time increases GDP but lowers our standard of living because it reduces the amount of goods and services we can consume." Is your friend's statement correct?
What will be an ideal response?
The tax deductibility of employer-provided health insurance is a primary factor in the spread of health insurance during the latter half of the twentieth century
a. True b. False
A government may be able to reduce the international value of its currency by:
A. selling its currency in the foreign exchange market. B. buying its currency in the foreign exchange market. C. selling foreign currencies in the foreign exchange market. D. increasing its domestic interest rates.
Refer to the information provided in Table 3.1 below to answer the question(s) that follow. Table 3.1Price per PizzaQuantity Demanded (Pizzas per Month)Quantity Supplied (Pizzas per Month)$31,200 600 61,000 700 9 800 80012 600 90015 4001,000Refer to Table 3.1. In this market there will be an excess supply of 300 pizzas at a price of
A. $6. B. $9. C. $12. D. $15.