Question 1

Exhibit 1A-6 Straight line   In Exhibit 1A-6, the slope of the straight line A-D is:

Accepted Answer

A) 0. 
B) 1. 
C) 1\2. 
D) - 1. 
A) 0. 
B) 1. 
C) 1\2. 
D) - 1. A

Question 2

A horizontal line has an infinite slope.

Accepted Answer

A) True 
 B)False  False

Question 3

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 these. 
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 these. E

Question 4

In a graphic relationship, shifts in a curve are caused by a change in:

Accepted Answer

A) the slope of the curve. 
B) a factor not measured on the axes of the graph. 
C) one of the factors measured on either axes of the graph. 
D) any factor, whether measured on the axes of the graph of not. 
A) the slope of the curve. 
B) a factor not measured on the axes of the graph. 
C) one of the factors measured on either axes of the graph. 
D) any factor, whether measured on the axes of the graph of not.

Question 5

A straight line or curve can shift when a factor not included on the vertical axis or horizontal axis changes.

Accepted Answer

A) True 
 B)False

Question 6

Exhibit 1A-3 Straight line   Straight line AB in Exhibit 1A-3 shows that:

Accepted Answer

A) increasing values for X reduces the value of Y. 
B) decreasing values for X increases the value of Y. 
C) there is an inverse relationship between X and Y. 
D) all of these. 
A) increasing values for X reduces the value of Y. 
B) decreasing values for X increases the value of Y. 
C) there is an inverse relationship between X and Y. 
D) all of these.

Question 7

The graph of a direct relationship will have a positive slope.

Accepted Answer

A) True 
 B)False

Question 8

Two variables that are inversely related tend to move in opposite directions.

Accepted Answer

A) True 
 B)False

Question 9

Exhibit 1A-1 Straight line   As shown in Exhibit 1A-1, 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 10

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 11

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 these. 
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 these.

Question 12

A shift in a curve represents a change in:

Accepted Answer

A) the variable on the horizontal axis. 
B) the variable on the vertical axis. 
C) a third variable that is not on either axis. 
D) any variable that is relevant to the relationship being graphed. 
A) the variable on the horizontal axis. 
B) the variable on the vertical axis. 
C) a third variable that is not on either axis. 
D) any variable that is relevant to the relationship being graphed.

Question 13

Exhibit 1A-4 Straight line   Straight line A-D in Exhibit 1A-4 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 do not affect the value of Y. 
D) all of these. 
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 do not affect the value of Y. 
D) all of these.

Question 14

Exhibit 1A-6 Straight line   In Exhibit 1A-6, the slope of straight line A-D is:

Accepted Answer

A) greater than 1. 
B) equal to 1. 
C) less than 1. 
D) zero. 
A) greater than 1. 
B) equal to 1. 
C) less than 1. 
D) zero.

Question 15

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 these 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 these would shift the line in the graph.

Question 16

Exhibit 1A-8 Straight line relationship   According to the Exhibit 1A-8, the relationship between the price and quantity purchased of pizza is:

Accepted Answer

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

Question 17

A graph can be used to illustrate the relationship between the price of compact discs and the quantity of compact discs demanded. If there is evidence that buyers' income also influences the demand for compact discs, then a movement along the curve can be caused by a change in the price of compact discs.

Accepted Answer

A) True 
 B)False

Question 18

The slope of a line parallel to the vertical axis is:

Accepted Answer

A) 1. 
B) 0. 
C) infinite. 
D) undefined. 
A) 1. 
B) 0. 
C) infinite. 
D) undefined.

Question 19

Exhibit 1A-3 Straight line   In Exhibit 1A-3, the slope for straight line AB is:

Accepted Answer

A) 3. 
B) 1. 
C) - 1. 
D) - 5. 
A) 3. 
B) 1. 
C) - 1. 
D) - 5.

Question 20

An inverse relationship exists when:

Accepted Answer

A) there is no association between two variables. 
B) one variable increases and there is no change in the other variable. 
C) one variable increases and the other variable increases. 
D) one variable increases and the other variable decreases. 
A) there is no association between two variables. 
B) one variable increases and there is no change in the other variable. 
C) one variable increases and the other variable increases. 
D) one variable increases and the other variable decreases.

Exam 21: Applying Graphs to Economics

Exhibit 1A-6 Straight line In Exhibit 1A-6, the slope of the straight line A-D is:

A horizontal line has an infinite slope.

Which of the following statements is correct?

In a graphic relationship, shifts in a curve are caused by a change in:

A straight line or curve can shift when a factor not included on the vertical axis or horizontal axis changes.

Exhibit 1A-3 Straight line Straight line AB in Exhibit 1A-3 shows that:

The graph of a direct relationship will have a positive slope.

Two variables that are inversely related tend to move in opposite directions.

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

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

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

A shift in a curve represents a change in:

Exhibit 1A-4 Straight line Straight line A-D in Exhibit 1A-4 shows that:

Exhibit 1A-6 Straight line In Exhibit 1A-6, the slope of straight line A-D is:

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

Exhibit 1A-8 Straight line relationship According to the Exhibit 1A-8, the relationship between the price and quantity purchased of pizza is:

The slope of a line parallel to the vertical axis is:

Exhibit 1A-3 Straight line In Exhibit 1A-3, the slope for straight line AB is:

An inverse relationship exists when:

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Gross Domestic Product

Business Cycles and Unemployment

Inflation

The Keynesian Model

The Keynesian Model in Action

Aggregate Demand and Supply

Fiscal Policy

The Public Sector

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

The Phillips Curve and Expectations Theory

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Consumer Surplus, Producer Surplus, and Market Efficiency

the Self-Correcting Aggregate Demand and Supply Model

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

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