What are the two different types of relationships that variables can have? Explain each. What do these relationships look like when they are graphed?
What will be an ideal response?
Variables can have two relationships: positive (or direct) and negative (or inverse). A positive relationship occurs when the variables move in the same direction, so that when one increases, the other also increases. A negative relationship occurs when the variables move in the opposite direction, so that when one increases, the other decreases. When a positive relationship is graphed, the line slopes upward to the right. When a negative relationship is graphed, the line slopes downward to the right.
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The theory of efficiency wages asserts that
a. employers set wages based on each employee's productivity. b. employers strive to hold wages below equilibrium levels. c. employers may find it profitable to pay above-equilibrium wages. d. efficient workers actually earn lower wages than those earned by inefficient workers.
When discussing the price elasticity of demand we generally refer to the absolute price elasticity of demand by consumers. This means that we will
A) disregard the law of demand. B) ignore its relationship to demand. C) disregard the minus sign. D) consider absolute rather than relative changes.
After the financial crisis of the late 2000s, President Obama and Congress considered adding to the Federal Reserve's functions by making it the nation's primary regulator of
A. systemic risk. B. credit risk. C. investment risk. D. default risk.
Refer to the below table. At the profit-maximizing level of output, marginal revenue is:
Answer the question based on the demand and cost schedules for a monopolistic ally competitive firm given in the table below.
A. $0
B. $4
C. $5
D. $8