Question 1

In Exhibit 1A-1,the slope of straight line AB is:

Accepted Answer

A)  positive. 
B)  zero. 
C)  negative. 
D)  variable. 
A)  positive. 
B)  zero. 
C)  negative. 
D)  variable.

Question 2

Exhibit 1A-2 Straight line
  
-In Exhibit 1A-2,the slope of straight line CD is:

Accepted Answer

A)  positive. 
B)  zero. 
C)  negative. 
D)  variable. 
A)  positive. 
B)  zero. 
C)  negative. 
D)  variable.

Question 3

Exhibit 1A-5 Straight line
  
-In Exhibit 1A-5,the slope for straight line CD is:

Accepted Answer

A)  5. 
B)  1. 
C)  -1. 
D)  -5. 
A)  5. 
B)  1. 
C)  -1. 
D)  -5.

Question 4

Measured between two points on a curve,the ratio of the change in the variable on the vertical axis to the change in the variable on the horizontal axis is the:

Accepted Answer

A)  axis. 
B)  slope. 
C)  dependent curve. 
D)  independent curve. 
A)  axis. 
B)  slope. 
C)  dependent curve. 
D)  independent curve.

Question 5

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

Accepted Answer

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. 
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.

Question 6

Which of the following statements is correct?

Accepted Answer

A)  Slope is the ratio of the vertical change (the rise or fall) to the horizontal change (the run). 
B)  A direct relationship is one in which two variables change in the same direction. 
C)  An inverse relationship is one in which two variables change in opposite directions. 
D)  An independent relationship is one in which two variables are unrelated. 
E)  All of the above. 
A)  Slope is the ratio of the vertical change (the rise or fall) to the horizontal change (the run). 
B)  A direct relationship is one in which two variables change in the same direction. 
C)  An inverse relationship is one in which two variables change in opposite directions. 
D)  An independent relationship is one in which two variables are unrelated. 
E)  All of the above.

Question 7

Straight line AB in Exhibit 1A-1 shows that:

Accepted Answer

A)  increasing values for X will decrease the values of Y. 
B)  decreasing values for X will increase the values of Y. 
C)  there is a direct relationship between X and Y. 
D)  all of the above. 
A)  increasing values for X will decrease the values of Y. 
B)  decreasing values for X will increase the values of Y. 
C)  there is a direct relationship between X and Y. 
D)  all of the above.

Question 8

Graphically express a direct and an inverse or negative relationship.What could cause a shift in a line or curve expressing a relationship between two variables?

Accepted Answer

A direct relationship will slope upward;

Question 9

A downward-sloping line has a negative slope.

Accepted Answer

A) True 
 B)False

Question 10

If two variables are inversely related,then they change in the same direction.

Accepted Answer

A) True 
 B)False

Question 11

Exhibit 1A-10 Multi-curve graph
  
-Exhibit 1A-10 represents a three-variable relationship.As the annual income of consumers rises from $20,000 (line A)to $40,000 (line B),the result is a(n):

Accepted Answer

A)  rightward movement along each curve. 
B)  leftward movement along each curve. 
C)  leftward shift in curve B to curve A. 
D)  leftward shift in curve A to curve B. 
A)  rightward movement along each curve. 
B)  leftward movement along each curve. 
C)  leftward shift in curve B to curve A. 
D)  leftward shift in curve A to curve B.

Question 12

Exhibit 1A-2 Straight line
  
-In Exhibit 1A-2,as X increases along the horizontal axis,corresponding to points C-D on the line,the Y values increase.The relationship between the X and Y variables is:

Accepted Answer

A)  direct. 
B)  inverse. 
C)  independent. 
D)  variable. 
A)  direct. 
B)  inverse. 
C)  independent. 
D)  variable.

Question 13

Exhibit 1A-3 Straight line
  
-As shown in Exhibit 1A-3,the slope of straight line AB:

Accepted Answer

A)  decreases with increases in X. 
B)  increases with increases in X. 
C)  increases with decreases in X. 
D)  remains constant with changes in X. 
A)  decreases with increases in X. 
B)  increases with increases in X. 
C)  increases with decreases in X. 
D)  remains constant with changes in X.

Question 14

Exhibit 1A-2 Straight line
  
-Straight line CD in Exhibit 1A-2 shows that:

Accepted Answer

A)  increasing values for X will increase the value of Y. 
B)  decreasing values for X will decrease the value of Y. 
C)  there is a direct relationship between X and Y. 
D)  all of the above. 
A)  increasing values for X will increase the value of Y. 
B)  decreasing values for X will decrease the value of Y. 
C)  there is a direct relationship between X and Y. 
D)  all of the above.

Question 15

Exhibit 1A-6 Straight line
  
-Straight line A-D in Exhibit 1A-6 shows that:

Accepted Answer

A)  increasing value for X will increase the value of Y. 
B)  increasing value for X will decrease the value of Y. 
C)  increasing values for X does not affect the value of Y. 
D)  all of the above. 
A)  increasing value for X will increase the value of Y. 
B)  increasing value for X will decrease the value of Y. 
C)  increasing values for X does not affect the value of Y. 
D)  all of the above.

Question 16

Which of the following is used to illustrate an independent relationship between two variables?

Accepted Answer

A)  An upward-sloping curve 
B)  A downward-sloping curve 
C)  A hill-shaped curve 
D)  A horizontal or vertical line 
A)  An upward-sloping curve 
B)  A downward-sloping curve 
C)  A hill-shaped curve 
D)  A horizontal or vertical line

Question 17

Exhibit 1A-9 Multi-curve graph
  
-Exhibit 1A-9 represents a three-variable relationship.As the annual income of consumers falls from $50,000 (line A)to $30,000 (line B),the result is a(n):

Accepted Answer

A)  rightward movement along each curve. 
B)  leftward movement along each curve. 
C)  leftward shift in curve A to curve B. 
D)  rightward shift in curve A to curve B. 
A)  rightward movement along each curve. 
B)  leftward movement along each curve. 
C)  leftward shift in curve A to curve B. 
D)  rightward shift in curve A to curve B.

Question 18

Exhibit 1A-8 Straight line relationship
  
-Which of the following would cause a shift in the relationship shown in Exhibit 1A-8?

Accepted Answer

A)  A fall in household incomes. 
B)  A fall in the price of pizza. 
C)  A fall in the quantity of pizza that people wish to purchase. 
D)  All of the above would shift the line in the graph. 
A)  A fall in household incomes. 
B)  A fall in the price of pizza. 
C)  A fall in the quantity of pizza that people wish to purchase. 
D)  All of the above would shift the line in the graph.

Question 19

A direct relationship is expressed graphically as a:

Accepted Answer

A)  positively sloped line or curve. 
B)  negatively sloped line or curve. 
C)  horizontal line. 
D)  vertical line. 
A)  positively sloped line or curve. 
B)  negatively sloped line or curve. 
C)  horizontal line. 
D)  vertical line.

Question 20

Exhibit 1A-6 Straight line
  
-In Exhibit 1A-6,as X increases along the horizontal axis,corresponding to points A-D on the line,the Y values remain unchanged at 20 units.The relationship between the X and Y variables is:

Accepted Answer

A)  direct. 
B)  inverse. 
C)  independent. 
D)  undefined. 
A)  direct. 
B)  inverse. 
C)  independent. 
D)  undefined.

Exam 1: A: Appendix: Applying Graphs to Economics

In Exhibit 1A-1,the slope of straight line AB is:

Exhibit 1A-2 Straight line -In Exhibit 1A-2,the slope of straight line CD is:

Exhibit 1A-5 Straight line -In Exhibit 1A-5,the slope for straight line CD is:

Measured between two points on a curve,the ratio of the change in the variable on the vertical axis to the change in the variable on the horizontal axis is the:

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

Which of the following statements is correct?

Straight line AB in Exhibit 1A-1 shows that:

Graphically express a direct and an inverse or negative relationship.What could cause a shift in a line or curve expressing a relationship between two variables?

A downward-sloping line has a negative slope.

If two variables are inversely related,then they change in the same direction.

Exhibit 1A-10 Multi-curve graph -Exhibit 1A-10 represents a three-variable relationship.As the annual income of consumers rises from $20,000 (line A)to $40,000 (line B),the result is a(n):

Exhibit 1A-2 Straight line -In Exhibit 1A-2,as X increases along the horizontal axis,corresponding to points C-D on the line,the Y values increase.The relationship between the X and Y variables is:

Exhibit 1A-3 Straight line -As shown in Exhibit 1A-3,the slope of straight line AB:

Exhibit 1A-2 Straight line -Straight line CD in Exhibit 1A-2 shows that:

Exhibit 1A-6 Straight line -Straight line A-D in Exhibit 1A-6 shows that:

Which of the following is used to illustrate an independent relationship between two variables?

Exhibit 1A-9 Multi-curve graph -Exhibit 1A-9 represents a three-variable relationship.As the annual income of consumers falls from $50,000 (line A)to $30,000 (line B),the result is a(n):

Exhibit 1A-8 Straight line relationship -Which of the following would cause a shift in the relationship shown in Exhibit 1A-8?

A direct relationship is expressed graphically as a:

Exhibit 1A-6 Straight line -In Exhibit 1A-6,as X increases along the horizontal axis,corresponding to points A-D on the line,the Y values remain unchanged at 20 units.The relationship between the X and Y variables is:

Introducing the Economic Way of Thinking

Production Possibilities,Opportunity Cost,and Economic Growth

Part 1: Market Demand and Supply

Part 2: Market Demand and Supply

Markets in Action

Price Elasticity of Demand

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets and Income Distribution

Gross Domestic Product

Business Cycles and Unemployment

Inflation

Aggregate Demand and Supply

A: Appendix: The Self-Correcting Aggregate Demand and Supply Model

Fiscal Policy

The Public Sector

Federal Deficits,Surpluses,and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

A: Appendix: Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

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