Question 1

A downward-sloping line has a negative slope.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) 3. 
B) 1. 
C) - 1. 
D) 1\2. 
A) 3. 
B) 1. 
C) - 1. 
D) 1\2.

Question 3

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

Accepted Answer

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

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 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 6

Exhibit 1A-1 Straight line   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 these. 
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 these.

Question 7

Exhibit 1A-4 Straight line   In Exhibit 1A-4, 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.

Question 8

A downward-sloping straight line exhibits a direct relationship between two variables.

Accepted Answer

A) True 
 B)False

Question 9

A direct 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.

Question 10

Exhibit 1A-5 Straight line   In Exhibit 1A-5, 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 11

Exhibit 1A-1 Straight line   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 12

Exhibit 1A-5 Straight line   As shown in Exhibit 1A-5, the slope of straight line CD:

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 13

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

Accepted Answer

A) 1. 
B) 5. 
C) 1\2. 
D) - 1. 
A) 1. 
B) 5. 
C) 1\2. 
D) - 1.

Question 14

Which of the following pairs is the most likely to exhibit an inverse relationship?

Accepted Answer

A) The amount of time you study and your grade point average. 
B) People's annual income and their expenditure on personal computers. 
C) Baseball players' salaries and their batting averages. 
D) The price of a concert and the number of tickets people purchase. 
A) The amount of time you study and your grade point average. 
B) People's annual income and their expenditure on personal computers. 
C) Baseball players' salaries and their batting averages. 
D) The price of a concert and the number of tickets people purchase.

Question 15

An upward-sloping line or curve is used to illustrate:

Accepted Answer

A) a direct relationship. 
B) an inverse relationship. 
C) two unrelated variables. 
D) the ceteris paribus assumption. 
A) a direct relationship. 
B) an inverse relationship. 
C) two unrelated variables. 
D) the ceteris paribus assumption.

Question 16

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 17

Exhibit 1A-7 Straight line relationship   Which of the following would cause a shift in the relationship shown in Exhibit 1A-7?

Accepted Answer

A) A rise in people's annual income. 
B) A rise in people's expenditure on air travel. 
C) A rise in the price of air travel. 
D) All of these would shift the line in the graph. 
A) A rise in people's annual income. 
B) A rise in people's expenditure on air travel. 
C) A rise in the price of air travel. 
D) All of these would shift the line in the graph.

Question 18

Exhibit 1A-5 Straight line   In Exhibit 1A-5, as X increases along the horizontal axis, corresponding to points C-D 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 19

Exhibit 1A-2 Straight line   As shown in Exhibit 1A-2, the slope of straight line CD:

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 20

Distinguish a direct and an inverse or negative relationship. Provide an example of each type of relationship.

Accepted Answer

A direct relationship between two variab

Exam 21: Applying Graphs to Economics

A downward-sloping line has a negative slope.

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

Exhibit 1A-6 Straight line In Exhibit 1A-6, the slope of straight line A-D 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 is used to illustrate an independent relationship between two variables?

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

Exhibit 1A-4 Straight line In Exhibit 1A-4, the slope of the straight line A-D is:

A downward-sloping straight line exhibits a direct relationship between two variables.

A direct relationship exists when:

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

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

Exhibit 1A-5 Straight line As shown in Exhibit 1A-5, the slope of straight line CD:

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

Which of the following pairs is the most likely to exhibit an inverse relationship?

An upward-sloping line or curve is used to illustrate:

A direct relationship is expressed graphically as a:

Exhibit 1A-7 Straight line relationship Which of the following would cause a shift in the relationship shown in Exhibit 1A-7?

Exhibit 1A-5 Straight line In Exhibit 1A-5, as X increases along the horizontal axis, corresponding to points C-D on the line, the Y values decrease. The relationship between the X and Y variables is:

Exhibit 1A-2 Straight line As shown in Exhibit 1A-2, the slope of straight line CD:

Distinguish a direct and an inverse or negative relationship. Provide an example of each type of relationship.

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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