Question 1

If two variables are positively related:

Accepted Answer

A)  as one goes up in value, the other must go up in value, too. 
B)  as one goes up in value, the other must go down in value. 
C)  there is always a trade-off between the two. 
D)  one variable is always the reciprocal of the other. 
A)  as one goes up in value, the other must go up in value, too. 
B)  as one goes up in value, the other must go down in value. 
C)  there is always a trade-off between the two. 
D)  one variable is always the reciprocal of the other.

Question 2

Use the following to answer questions 
Figure: Slope  
-(Figure: Slope) Look at the figure Slope. The slope of the line in the graph can be calculated by:

Accepted Answer

A)  dividing the horizontal change by the vertical change. 
B)  dividing the vertical change by the horizontal change. 
C)  subtracting the sum of the Y values from the sum of the X values. 
D)  adding the sum of the X values to the sum of the Y values. 
A)  dividing the horizontal change by the vertical change. 
B)  dividing the vertical change by the horizontal change. 
C)  subtracting the sum of the Y values from the sum of the X values. 
D)  adding the sum of the X values to the sum of the Y values.

Question 3

Use the following to answer questions 
Figure: Seasonally Adjusted Unemployment Rate  
-(Figure: Seasonally Adjusted Unemployment Rate) Look at the figure Seasonally Adjusted Unemployment Rate. The distance between each labeled point on the horizontal axis is one year. Using this graph, the unemployment rate was at a minimum in ______ and a maximum in ______.

Accepted Answer

A)  2003; 2000 
B)  2007; 2001 
C)  2003; 1999 
D)  2000; 2003 
A)  2003; 2000 
B)  2007; 2001 
C)  2003; 1999 
D)  2000; 2003

Question 4

Use the following to answer questions 
Figure: Seasonally Adjusted Unemployment Rate  
-(Figure: Seasonally Adjusted Unemployment Rate) Look at the figure Seasonally Adjusted Unemployment Rate. The distance between each labeled point on the horizontal axis is one year. What is the approximate slope of the graph between 1/2001 and 1/2003?

Accepted Answer

A)  2 
B)  1 
C)  -1 
D)  -2 
A)  2 
B)  1 
C)  -1 
D)  -2

Question 5

Professor Macro wants to use a numerical graph to show the percentage of government spending accounted for by its various components. Which of the following graphs is most suitable for this purpose?

Accepted Answer

A)  bar graph 
B)  pie chart 
C)  time-series graph 
D)  scatter diagram 
A)  bar graph 
B)  pie chart 
C)  time-series graph 
D)  scatter diagram

Question 6

A ______ graph shows how the value of one or more variables has changed over some period.

Accepted Answer

A)  linear 
B)  time-series 
C)  nonlinear 
D)  periodic table 
A)  linear 
B)  time-series 
C)  nonlinear 
D)  periodic table

Question 7

If a supply curve is represented by the equation Q = 10 + 2P, what is its slope?

Accepted Answer

A)  1/2 
B)  1 
C)  2 
D)  5 
A)  1/2 
B)  1 
C)  2 
D)  5

Question 8

Use the following to answer questions 
Figure: Good X and Good Y  
-(Figure: Good X and Good Y) Look at the figure Good X and Good Y. If we move from point B to point C in the figure, the x-variable has ______ units and the y-variable has ______ units.

Accepted Answer

A)  decreased by 2; increased by 15 
B)  increased by 2; decreased by 15 
C)  decreased by 15; increased by 2 
D)  increased by 15; decreased by 2 
A)  decreased by 2; increased by 15 
B)  increased by 2; decreased by 15 
C)  decreased by 15; increased by 2 
D)  increased by 15; decreased by 2

Question 9

The relation between two variables that move in the same direction is said to be:

Accepted Answer

A)  independent. 
B)  neutral. 
C)  positive. 
D)  indirect. 
A)  independent. 
B)  neutral. 
C)  positive. 
D)  indirect.

Question 10

The owner of the Dismal Philosopher, one of the five bookstores on College Road, asks you to make a graph showing each College Road bookstore's share of all five stores' book purchases. A good way to show this information is with a pie chart.

Accepted Answer

A) True 
 B)False

Question 11

Use the following to answer questions 
Figure: Demand and Supply of Shirts  
-(Figure: Demand and Supply of Shirts) Look at the figure Demand and Supply of Shirts. If the line labeled S shows how many shirts per week will be offered for sale at various prices, then it is clear that for supply, quantity and price are:

Accepted Answer

A)  the same. 
B)  positively related. 
C)  negatively related. 
D)  not related. 
A)  the same. 
B)  positively related. 
C)  negatively related. 
D)  not related.

Question 12

Use the following to answer questions 
Figure: Cold Drinks Sold and Temperature  
-(Figure: Cold Drinks Sold and Temperature) Look at the figure Cold Drinks Sold and Temperature. If we move from point C to point E in the figure, the outside temperature has ______ degrees and the number of cold drinks sold has ______.

Accepted Answer

A)  decreased by 30; decreased by 30 
B)  increased by 20; increased by 20 
C)  increased by 30; increased by 30 
D)  increased by 40; increased by 40 
A)  decreased by 30; decreased by 30 
B)  increased by 20; increased by 20 
C)  increased by 30; increased by 30 
D)  increased by 40; increased by 40

Question 13

If two variables are negatively related, they will always be represented by:

Accepted Answer

A)  a line or curve that slopes downward. 
B)  a straight line. 
C)  a horizontal line. 
D)  a line or curve that slopes upward. 
A)  a line or curve that slopes downward. 
B)  a straight line. 
C)  a horizontal line. 
D)  a line or curve that slopes upward.

Question 14

A scatter diagram shows:

Accepted Answer

A)  how far apart dependent variables are. 
B)  individual points of data showing both variable values. 
C)  the slope of a line. 
D)  the intercept of a curve. 
A)  how far apart dependent variables are. 
B)  individual points of data showing both variable values. 
C)  the slope of a line. 
D)  the intercept of a curve.

Question 15

Use the following to answer questions 
Figure: Labor Force Participation Rate  
-(Figure: Labor Force Participation Rate) Look at the figure Labor Force Participation Rate. During 1970-1985, the labor force participation rate was _____ for women and _____ for men.

Accepted Answer

A)  increasing; decreasing 
B)  increasing; increasing 
C)  decreasing; increasing 
D)  decreasing; decreasing 
A)  increasing; decreasing 
B)  increasing; increasing 
C)  decreasing; increasing 
D)  decreasing; decreasing

Question 16

Your boss asks you to graph company profits for the past 10 years. The best way to show this information is with:

Accepted Answer

A)  a scatter diagram. 
B)  a pie chart. 
C)  a time-series graph. 
D)  an independent graph. 
A)  a scatter diagram. 
B)  a pie chart. 
C)  a time-series graph. 
D)  an independent graph.

Question 17

Use the following to answer questions 
Figure: Illustrating Slope  
-(Figure: Illustrating Slope) Look at the figure Illustrating Slope. In the graph, line 3 depicts X and Y to be:

Accepted Answer

A)  positively related. 
B)  unrelated. 
C)  negatively related. 
D)  both constants. 
A)  positively related. 
B)  unrelated. 
C)  negatively related. 
D)  both constants.

Question 18

The relation between two variables that move in opposite directions is said to be:

Accepted Answer

A)  independent. 
B)  positive. 
C)  direct. 
D)  negative. 
A)  independent. 
B)  positive. 
C)  direct. 
D)  negative.

Question 19

A pie chart is used to depict information about:

Accepted Answer

A)  the relative shares of categories of data. 
B)  the changes of a particular variable over time. 
C)  positive, not negative, relationships among variables. 
D)  the changes of a particular variable over time and positive relationships. 
A)  the relative shares of categories of data. 
B)  the changes of a particular variable over time. 
C)  positive, not negative, relationships among variables. 
D)  the changes of a particular variable over time and positive relationships.

Question 20

Use the following to answer question 
Figure: Y = f(X)  
-(Figure: Y = f(X) Look at the figure Y = f(X). The slope of the relation between x and y:

Accepted Answer

A)  is positive and constant. 
B)  is negative and getting steeper. 
C)  is positive and getting steeper. 
D)  is positive and getting flatter. 
A)  is positive and constant. 
B)  is negative and getting steeper. 
C)  is positive and getting steeper. 
D)  is positive and getting flatter.

Exam 32: Graphs in Economics

If two variables are positively related:

Use the following to answer questions Figure: Slope -(Figure: Slope) Look at the figure Slope. The slope of the line in the graph can be calculated by:

Professor Macro wants to use a numerical graph to show the percentage of government spending accounted for by its various components. Which of the following graphs is most suitable for this purpose?

A ______ graph shows how the value of one or more variables has changed over some period.

If a supply curve is represented by the equation Q = 10 + 2P, what is its slope?

Use the following to answer questions Figure: Good X and Good Y -(Figure: Good X and Good Y) Look at the figure Good X and Good Y. If we move from point B to point C in the figure, the x-variable has ______ units and the y-variable has ______ units.

The relation between two variables that move in the same direction is said to be:

The owner of the Dismal Philosopher, one of the five bookstores on College Road, asks you to make a graph showing each College Road bookstore's share of all five stores' book purchases. A good way to show this information is with a pie chart.

If two variables are negatively related, they will always be represented by:

A scatter diagram shows:

Use the following to answer questions Figure: Labor Force Participation Rate -(Figure: Labor Force Participation Rate) Look at the figure Labor Force Participation Rate. During 1970-1985, the labor force participation rate was _____ for women and _____ for men.

Your boss asks you to graph company profits for the past 10 years. The best way to show this information is with:

Use the following to answer questions Figure: Illustrating Slope -(Figure: Illustrating Slope) Look at the figure Illustrating Slope. In the graph, line 3 depicts X and Y to be:

The relation between two variables that move in opposite directions is said to be:

A pie chart is used to depict information about:

Use the following to answer question Figure: Y = f(X) -(Figure: Y = f(X) Look at the figure Y = f(X). The slope of the relation between x and y:

First Principles

Economic Models- Trade-Offs and Trade

Supply and Demand

Consumer and Producer Surplus

Price Controls and Quotas- Meddling With Markets

Elasticity

Taxes

The Rational Consumer

International Trade

Decision Making by Individuals and Firms

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Macroeconomics- the Big Picture

Gdp and the Consumer Price Index

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Crises and Consequences

Macroeconomics- Events and Ideas

Open-Economy Macroeconomics

Toward a Fuller Understanding

Consumer Preferences and Consumer Choice

Indifference Curve Analysis of Labor Supply

Filters

Use the following to answer questions Figure: Good X and Good Y -(Figure: Good X and Good Y) Look at the figure Good X and Good Y. If we move from point B to point C in the figure, the x-variable has units and the y-variable has units.

Use the following to answer questions Figure: Labor Force Participation Rate -(Figure: Labor Force Participation Rate) Look at the figure Labor Force Participation Rate. During 1970-1985, the labor force participation rate was _ for women and _ for men.