Multiple Choice
In microeconomics, what does it mean to say that two variables are positively associated?
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1. Reading and Understanding Graphs
Relationships between Variables
Multiple Choice
Which of the following best describes what it means for two variables to be positively associated?
A
The two variables move independently of each other.
B
As one variable increases, the other variable decreases.
C
Both variables always have the same numerical value.
D
As one variable increases, the other variable also increases.
Verified step by step guidance1
Understand the concept of association between two variables: it describes how the values of one variable relate to the values of another variable.
Recognize that a positive association means that when one variable increases, the other variable tends to increase as well.
Contrast this with a negative association, where an increase in one variable corresponds to a decrease in the other variable.
Note that independence means the variables do not affect each other’s values, so their movements are unrelated.
Conclude that the best description of a positive association is: 'As one variable increases, the other variable also increases.'
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