Which of the following pairs is the most likely to exhibit a direct relationship?

A. The price of gasoline and the amount of gasoline that people purchase.
B. Cholesterol levels and the likelihood of developing heart disease.
C. Outdoor temperature and heating oil sales.
D. Annual income and weekly pawn shop visits.

Answer: B

Economics

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Decreasing returns to scale may occur as increasing the amount of inputs used

A) increases specialization. B) always increases the amount of output produced. C) may cause coordination difficulties. D) increases efficiency.

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If the Fed raises the interest rate, this will ________ inflation and ________ real GDP in the short run

A) reduce; raise B) increase; lower C) increase; raise D) reduce; lower

Economics