PART-II.docx

CHAPTER 1 (PART II) =================== Law of Supply and Demand ------------------------ **The Importance of Thinking at the Margin** **Externalities- A shortcoming of the Market Cured by Market Methods** *The rich have grown richer while the poor have become poorer.* **The Trade-off between E...

CHAPTER 1 (PART II) =================== Law of Supply and Demand ------------------------ **The Importance of Thinking at the Margin** **Externalities- A shortcoming of the Market Cured by Market Methods** *The rich have grown richer while the poor have become poorer.* **The Trade-off between Efficiency and Equality** 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. **Examples of Equality** 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. ***Abstraction*** A **correlation** is a statistical measure of the relationship between two variables. The measure is best used in variables that demonstrate a linear relationship between each other. The fit of the data can be visually represented in a scatterplot. Using a scatterplot, we can generally assess the relationship between the variables and determine whether they are correlated or not. In addition, it can be described as either strong or weak, and as either positive or negative. **Types of Correlation:** - - -