What is the difference between a positive and a negative relationship?
What will be an ideal response?
Two variables are positively related when an increase (decrease) in one is associated with an increase (decrease) in the other. In this case, the variables move together, in the same direction. Two variables are negatively related when an increase (decrease) in one is associated with a decrease (increase) in the other. In this case, the variables move in the opposite direction.
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Consumers will spend a higher proportion of a one-time bonus than they would of a permanent salary increase
Indicate whether the statement is true or false
The price of a factor of production that is in fixed supply is called
A) opportunity cost. B) a compensating differential. C) economic rent. D) economic profit.
For an inferior good:
a. the income elasticity is positive. b. the income elasticity if negative. c. the income elasticity is zero. d. the income elasticity is unity.
Tax incidence on buyers and sellers is determined by: a. the relative elasticities of demand and supply. b. the amount of tax imposed by the government. c. the deadweight loss of tax
d. the type of tax system operating in an economy.