In microeconomics, what does it mean to say that two variables are positively associated?

• A. As one variable increases, the other variable also increases.
• B. As one variable increases, the other variable decreases.
• C. Both variables always have the same numerical value.
• D. The two variables move independently of each other.

Answer: (A)

Verified step by step guidance

1. Understand that in microeconomics, when we say two variables are positively associated, we are describing the relationship between their movements or changes.
2. Recognize that a positive association means that the variables move in the same direction: when one variable increases, the other variable also increases.
3. Contrast this with a negative association, where one variable increases while the other decreases, which is not the case here.
4. Note that positive association does not imply the variables have the same numerical value, only that their trends move together.
5. Conclude that the correct interpretation of positive association is: as one variable increases, the other variable also increases.