Multiple Choice
In microeconomics, what does it mean to say that two variables are positively associated?
1. Reading and Understanding Graphs
Relationships between Variables
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Which type of relationship occurs when one variable decreases while the other variable increases?
A
Inverse relationship
B
Proportional relationship
C
Direct relationship
D
No relationship
Verified step by step guidance1
Understand the definitions of the types of relationships between two variables:
1. Direct (or proportional) relationship: Both variables increase or decrease together.
2. Inverse relationship: One variable increases while the other decreases.
3. No relationship: Changes in one variable do not affect the other.
Identify that when one variable decreases while the other increases, this matches the definition of an inverse relationship.
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Relationships between Variables practice set
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