Question 1

When two variables have a negative correlation,

Accepted Answer

A) they tend to move in opposite directions. 
B) they tend to move in the same direction. 
C) one variable will move while the other remains constant. 
D) the variables' values are never positive. 
A) they tend to move in opposite directions. 
B) they tend to move in the same direction. 
C) one variable will move while the other remains constant. 
D) the variables' values are never positive. A

Question 2

Figure 2-18
Relationship between Price and Restaurant Meals  
-Refer to Figure 2-18.In the ordered pair (8,24)

Accepted Answer

A) the x-coordinate is 8 and the y-coordinate is 24. 
B) the x-coordinate is 24 and the y-coordinate is 8. 
C) the numbers tell the location of the origin. 
D) the 8 represents the price and the 24 represents the number of restaurant meals. 
A) the x-coordinate is 8 and the y-coordinate is 24. 
B) the x-coordinate is 24 and the y-coordinate is 8. 
C) the numbers tell the location of the origin. 
D) the 8 represents the price and the 24 represents the number of restaurant meals. A

Question 3

Figure 2-18
Relationship between Price and Restaurant Meals  
-Refer to Figure 2-18.A movement from point A to point Z is called

Accepted Answer

A) a shift in demand. 
B) a movement along the demand curve. 
C) a shift in supply. 
D) a movement along the supply curve. 
A) a shift in demand. 
B) a movement along the demand curve. 
C) a shift in supply. 
D) a movement along the supply curve. A

Question 4

When two variables move in opposite directions,the curve relating them is

Accepted Answer

A) upward sloping,and we say the variables are positively related. 
B) upward sloping,and we say the variables are negatively related. 
C) downward sloping,and we say the variables are positively related. 
D) downward sloping,and we say the variables are negatively related. 
A) upward sloping,and we say the variables are positively related. 
B) upward sloping,and we say the variables are negatively related. 
C) downward sloping,and we say the variables are positively related. 
D) downward sloping,and we say the variables are negatively related.

Question 5

When two variables have a negative correlation and the x-variable decreases,

Accepted Answer

A) the y-variable increases. 
B) the y-variable decreases. 
C) the y-variable stays the same. 
D) the x-variable can never be positive. 
A) the y-variable increases. 
B) the y-variable decreases. 
C) the y-variable stays the same. 
D) the x-variable can never be positive.

Question 6

In the ordered pair (5,3),3 is the

Accepted Answer

A) horizontal location of the point. 
B) the slope. 
C) the x-coordinate. 
D) the y-coordinate. 
A) horizontal location of the point. 
B) the slope. 
C) the x-coordinate. 
D) the y-coordinate.

Question 7

Eva wants to create a graph containing the prices of concert tickets and the corresponding quantities of concert tickets demanded by customers.She should use a(n)

Accepted Answer

A) pie chart. 
B) bar graph. 
C) time-series graph 
D) coordinate system. 
A) pie chart. 
B) bar graph. 
C) time-series graph 
D) coordinate system.

Question 8

Figure 2-17  
-Refer to Figure 2-17.The movement from point B to point C is a(n)

Accepted Answer

A) shift of the demand curve. 
B) movement along the demand curve. 
C) indication that the price of grapes has changed. 
D) indication that the costs incurred by firms that produce grapes have changed. 
A) shift of the demand curve. 
B) movement along the demand curve. 
C) indication that the price of grapes has changed. 
D) indication that the costs incurred by firms that produce grapes have changed.

Question 9

Figure 2-17  
-Refer to Figure 2-17.The movement from point B to point C could have been caused by

Accepted Answer

A) inflation. 
B) a change in income. 
C) a change in the price of grapes. 
D) a change in the cost of producing grapes. 
A) inflation. 
B) a change in income. 
C) a change in the price of grapes. 
D) a change in the cost of producing grapes.

Question 10

Suppose price is measured along the vertical axis on a graph.When price changes,there will be a

Accepted Answer

A) rotation of the curve. 
B) shift of the curve. 
C) movement along the curve. 
D) change in the slope of the curve. 
A) rotation of the curve. 
B) shift of the curve. 
C) movement along the curve. 
D) change in the slope of the curve.

Question 11

Figure 2-17  
-Refer to Figure 2-17.The movement from point A to point B is a(n)

Accepted Answer

A) shift of the demand curve. 
B) indication of a change in preferences for grapes. 
C) movement along the demand curve. 
D) indication of an increase in income. 
A) shift of the demand curve. 
B) indication of a change in preferences for grapes. 
C) movement along the demand curve. 
D) indication of an increase in income.

Question 12

The x-coordinate of an ordered pair specifies the

Accepted Answer

A) diagonal location of the point. 
B) vertical location of the point. 
C) horizontal location of the point. 
D) quadrant location in which the point is located. 
A) diagonal location of the point. 
B) vertical location of the point. 
C) horizontal location of the point. 
D) quadrant location in which the point is located.

Question 13

When two variables have a negative correlation,

Accepted Answer

A) when the x-variable decreases,the y-variable decreases. 
B) when the x-variable decreases,the y-variable increases. 
C) when the x-variable increases,the y-variable increases. 
D) More than one of the above is correct. 
A) when the x-variable decreases,the y-variable decreases. 
B) when the x-variable decreases,the y-variable increases. 
C) when the x-variable increases,the y-variable increases. 
D) More than one of the above is correct.

Question 14

Suppose that someone makes the argument that because empty alcohol containers are found at many accidents,the containers cause accidents.This would be an example of

Accepted Answer

A) sound logic. 
B) reverse causality. 
C) omitted variables. 
D) bias. 
A) sound logic. 
B) reverse causality. 
C) omitted variables. 
D) bias.

Question 15

Figure 2-19
In the following graph the x-axis shows the number of times a commuter rail train stops at a station per hour and the y-axis shows the number of commuter rail passengers per hour.
Commuter Rail Passengers by Frequency of Service  
-Refer to Figure 2-19.Which of the following conclusions should not be drawn from observing this graph?

Accepted Answer

A) There is a positive correlation between the frequency of service and the number of passengers. 
B) When there are 5 stops per hour,there are approximately 200 passengers. 
C) More stops per hour is associated with more passengers per hour. 
D) No other factors besides the frequency of service affect the number of passengers. 
A) There is a positive correlation between the frequency of service and the number of passengers. 
B) When there are 5 stops per hour,there are approximately 200 passengers. 
C) More stops per hour is associated with more passengers per hour. 
D) No other factors besides the frequency of service affect the number of passengers.

Question 16

If Martina's income increases and,as a result,she chooses to buy more lattés per month at each price,then her demand curve will

Accepted Answer

A) shift to the right. 
B) shift to the left. 
C) not shift;instead,Martina will move along her demand curve downward and to the right. 
D) not shift;instead,Martina will move along her demand curve upward and to the left. 
A) shift to the right. 
B) shift to the left. 
C) not shift;instead,Martina will move along her demand curve downward and to the right. 
D) not shift;instead,Martina will move along her demand curve upward and to the left.

Question 17

Figure 2-20
Relationship Between Years of Education and Annual Income  
-Refer to Figure 2-20.The graph above is a

Accepted Answer

A) bar graph 
B) scatterplot 
C) pie chart 
D) time series analysis 
A) bar graph 
B) scatterplot 
C) pie chart 
D) time series analysis

Question 18

The slope of a fairly flat upward-sloping line will be a

Accepted Answer

A) small positive number. 
B) large positive number. 
C) small negative number. 
D) large negative number. 
A) small positive number. 
B) large positive number. 
C) small negative number. 
D) large negative number.

Question 19

Graphs such as bar graphs and pie charts are limited in that they

Accepted Answer

A) can only show variables that are positively related. 
B) can only show variables that have a negative correlation. 
C) provide information on only one variable. 
D) provide information on no more than two variables. 
A) can only show variables that are positively related. 
B) can only show variables that have a negative correlation. 
C) provide information on only one variable. 
D) provide information on no more than two variables.

Question 20

The slope of a line passing through the points (15,3)and (10,6)is

Accepted Answer

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

Exam 2: Thinking Like an Economist: Graphing a Brief Review

When two variables have a negative correlation,

Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18.In the ordered pair (8,24)

Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18.A movement from point A to point Z is called

When two variables move in opposite directions,the curve relating them is

When two variables have a negative correlation and the x-variable decreases,

In the ordered pair (5,3),3 is the

Eva wants to create a graph containing the prices of concert tickets and the corresponding quantities of concert tickets demanded by customers.She should use a(n)

Figure 2-17 -Refer to Figure 2-17.The movement from point B to point C is a(n)

Figure 2-17 -Refer to Figure 2-17.The movement from point B to point C could have been caused by

Suppose price is measured along the vertical axis on a graph.When price changes,there will be a

Figure 2-17 -Refer to Figure 2-17.The movement from point A to point B is a(n)

The x-coordinate of an ordered pair specifies the

When two variables have a negative correlation,

Suppose that someone makes the argument that because empty alcohol containers are found at many accidents,the containers cause accidents.This would be an example of

If Martina's income increases and,as a result,she chooses to buy more lattés per month at each price,then her demand curve will

Figure 2-20 Relationship Between Years of Education and Annual Income -Refer to Figure 2-20.The graph above is a

The slope of a fairly flat upward-sloping line will be a

Graphs such as bar graphs and pie charts are limited in that they

The slope of a line passing through the points (15,3)and (10,6)is

Ten Principles of Economics

Ten Principles of Economics: How People Make Decisions

Ten Principles of Economics: How People Interact

Ten Principles of Economics: How the Economy As a Whole Works

Ten Principles of Economics: Part A

Ten Principles of Economics: Part B

Thinking Like an Economist

Thinking Like an Economist: The Economist As Scientist

Thinking Like an Economist: The Economist As Policy Adviser

Thinking Like an Economist: Why Economists Disagree

Thinking Like an Economist: Lets Get Going

Thinking Like an Economist: Part A

Thinking Like an Economist: Part B

Interdependence and the Gains From Trade

Interdependence and the Gains From Trade: A Parable for the Modern Economy

Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

Interdependence and the Gains From Trade: Applications of Comparative Advantage

Interdependence and the Gains From Trade: Conclusion

Interdependence and the Gains From Trade: Part A

Interdependence and the Gains From Trade: Part B

The Market Forces of Supply and Demand

The Market Forces of Supply and Demand:Markets and Competition

The Market Forces of Supply and Demand: Demand

The Market Forces of Supply and Demand: Supply

The Market Forces of Supply and Demand: Supply and Demand Together

The Market Forces of Supply and DemandConclusion How Prices Allocate Resources

The Market Forces of Supply and Demand: Part A

The Market Forces of Supply and Demand: Part B

Elasticity and Its Applications

Elasticity and Its Applications: The Elasticity of Demand

Elasticity and Its Applications: The Elasticity of Supply

Elasticity and Its Applications: Three Applications of Supply,demand,and Elasticity

Elasticity and Its Applications: Part A

Elasticity and Its Applications: Part B

Supply Demand and Government Policies

Supply Demand and Government Policies: Controls on Prices

Supply Demand and Government Policies: Taxes

Supply Demand and Government Policies: Part A

Supply Demand and Government Policies: Part B

Consumers Producers and the Efficiency of Markets

Consumers Producers and the Efficiency of Markets: Consumer Surplus

Consumers Producers and the Efficiency of Markets: Producer Surplus

Consumers Producers and the Efficiency of Markets: Market Efficiency

Consumers Producers and the Efficiency of Markets: Conclusion Market Efficiency and Market Failure

Consumers Producers and the Efficiency of Markets: Part A

Consumers Producers and the Efficiency of Markets: Part B

Application the Cost of Taxation

Application the Cost of Taxation: The Deadweight Loss of Taxation

Application the Cost of Taxation: The Determinants of the Deadweight Loss

Application the Cost of Taxation: Deadweight Loss and Tax Revenue As Taxes Vary

Application the Cost of Taxation: Conclusion

Application the Cost of Taxation: Part A

Application the Cost of Taxation: Part B

Application International Trade

Application International Trade: The Determinants of Trade

Application International Trade: The Winners and Losers From Trade

Application International Trade: The Arguments for Restricting Trade

Application International Trade: Conclusion

Application International Trade: Part A

Application International Trade: Part B