Positive correlation between x and y implies that
A) when x is high, y is high.
B) when x is high, y is low.
C) when x is zero, y is positive.
D) x and y are positively unrelated.
A
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According to a recent study, "Stricter college alcohol policies, such as raising the price of alcohol, or banning alcohol on campus, decrease the number of students who use marijuana"
On the basis of this information, how would you describe alcohol and marijuana? A) The two goods are substitutes in consumption. B) The two goods are complements in consumption. C) They are both luxury goods. D) There is no relationship between the two goods.
Why does a sports car cost more than a mountain bike?
A) because sports car manufacturers are greedier than mountain bike manufacturers B) because sports cars are priced higher in order to make them attractive as status symbols C) because more scarce resources are required to produce a sports car than to produce a mountain bike D) because mountain bike manufacturers know that their customers have relatively low incomes