Chapter 2: The Economic Problem

Question 1

Ceteris Paribus

Answer 1

other things being equal—all other relevant things remaining the same.

Question 2

Direct Relationship

Answer 2

relationship between two variables that move in the same direction.

Question 3

Inverse Relationship

Answer 3

relationship between variables that move in opposite directions.

Question 4

Linear Relationship

Answer 4

relationship between two variables that is illustrated by a straight line.

Question 5

Negative Relationship

Answer 5

relationship between variables that move in opposite directions.

Question 6

Positive Relationship

Answer 6

relationship between two variables that move in the same direction.