334. Differentiate between the independent and dependent variables in an economic relationship. (p. 25) The dependent variable changes as a consequence of the change in the independent variable. By specifying one variable as the dependent variable, a causal relationship is implied with changes in the independent variable causing changes in the dependent variable. The dependent variable is the "effect" or outcome. Learning Objective: Appendix McConnell - Chapter 001 #334 335. Describe the slope of a direct and an inverse relationship. (p. 26) The ratio of the vertical change (the rise or fall) to the horizontal change (the run) in moving between two points on the line is called the slope of the line. The slope of an upward sloping line is positive, reflecting a direct relationship between two variables; the slope of a downward sloping line is negative, reflecting an inverse relationship. Learning Objective: Appendix McConnell - Chapter 001 #335
334. (p. 25) Differentiate between the independent and dependent variables in an economic relationship. The dependent variable changes as a consequence of the change in the independent variable. By specifying one variable as the dependent variable, a causal relationship is implied with changes in the independent variable causing changes in the dependent variable. The dependent variable is the "effect" or outcome. Learning Objective: Appendix McConnell - Chapter 001 #334 335. (p. 26) Describe the slope of a direct and an inverse relationship. The ratio of the vertical change (the rise or fall) to the horizontal change (the run) in moving between two points on the line is called the slope of the line. The slope of an upward sloping line is positive, reflecting a direct relationship between two variables; the slope of a downward sloping line is negative, reflecting an inverse relationship. Learning Objective: Appendix McConnell - Chapter 001 #335