Two variables are said to be negatively correlated if their values
A. tend to move in opposite directions.
B. tend to move in the same direction.
C. are always negative.
D. only decrease but never increase.
Answer: A
You might also like to view...
Latin America
A) is significantly smaller than the NAFTA market in terms of population. B) has a smaller population, but a larger GDP than the NAFTA market. C) has a larger population than the NAFTA market. D) is similar in population to the NAFTA market.
In an exchange economy A's utility is given by UA = x + y and B's by UB = min[x, 2y]. The initial endowment for A is x = 10, y = 8 and for B, x = 8, y = 4 . To reach the contact curve, these individuals must:
a. trade 1x for 1y. b. trade 2x for 1y. c. trade 1x for 2y. d. do nothing, since they are already on the contract curve.
Alice has $10 to spend on wine and cheese. If wine is $2.50 a glass and cheese $2, draw the corresponding budget line. Then draw three indifference curves, one showing the amount of wine and cheese Alice would choose, one showing less preferred combinations of wine and cheese, and the last showing preferred but unaffordable combinations
Consider Figure 12.5. The outcome of the game is:
A. both confess. B. neither confesses. C. A confesses and B does not. D. B confesses and A does not.