Question 1

Direct relationships are illustrated using upward-sloping lines and curves.

Accepted Answer

A) True 
 B)False

Question 2

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:

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 3

A graph is one method of expressing a model.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Exhibit 1A-7 Straight line relationship   What is the slope of the line shown in Exhibit 1A-7?

Accepted Answer

A) 1\20. 
B) 1\10. 
C) 1\5. 
D) 1\2. 
A) 1\20. 
B) 1\10. 
C) 1\5. 
D) 1\2.

Question 6

An upward-sloping straight line exhibits a direct relationship between two variables.

Accepted Answer

A) True 
 B)False

Question 7

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.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Suppose two variables are directly related. If one variable rises, then the other variable:

Accepted Answer

A) also rises. 
B) falls. 
C) remains unchanged. 
D) reacts unpredictably. 
A) also rises. 
B) falls. 
C) remains unchanged. 
D) reacts unpredictably.

Question 10

Exhibit 1A-7 Straight line relationship   According to Exhibit 1A-7, the relationship between annual income and air-travel expenditures is:

Accepted Answer

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

Question 11

A line that has a different slope at each point is a:

Accepted Answer

A) curve. 
B) straight line. 
C) vertical line. 
D) horizontal line. 
A) curve. 
B) straight line. 
C) vertical line. 
D) horizontal line.

Question 12

A change in a third variable not on either axis of a graph is illustrated with a:

Accepted Answer

A) horizontal or vertical line. 
B) movement along a curve. 
C) shift of a curve. 
D) point of intersection. 
A) horizontal or vertical line. 
B) movement along a curve. 
C) shift of a curve. 
D) point of intersection.

Question 13

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 14

Exhibit 1A-3 Straight line   In Exhibit 1A-3, as X increases along the horizontal axis, corresponding to points A-B on the line, the Y values decrease. 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 15

Exhibit 1A-3 Straight line   In Exhibit 1A-3, 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 16

The slope of a line is calculated as the ratio of the "rise" over the "run".

Accepted Answer

A) True 
 B)False

Question 17

Exhibit 1A-1 Straight line   In Exhibit 1A-1, as X increases along the horizontal axis, corresponding to points A-B 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 18

Exhibit 1A-5 Straight line   Straight line CD in Exhibit 1A-5 shows that:

Accepted Answer

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

Question 19

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 20

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 these. 
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 these.

Exam 21: Applying Graphs to Economics

Direct relationships are illustrated using upward-sloping lines and curves.

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:

A graph is one method of expressing a model.

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?

Exhibit 1A-7 Straight line relationship What is the slope of the line shown in Exhibit 1A-7?

An upward-sloping straight line exhibits a direct relationship between two variables.

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:

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

Suppose two variables are directly related. If one variable rises, then the other variable:

Exhibit 1A-7 Straight line relationship According to Exhibit 1A-7, the relationship between annual income and air-travel expenditures is:

A line that has a different slope at each point is a:

A change in a third variable not on either axis of a graph is illustrated with a:

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 In Exhibit 1A-3, as X increases along the horizontal axis, corresponding to points A-B on the line, the Y values decrease. The relationship between the X and Y variables is:

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

The slope of a line is calculated as the ratio of the "rise" over the "run".

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

Exhibit 1A-5 Straight line Straight line CD in Exhibit 1A-5 shows that:

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

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

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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