Question 1

The slope of an inverse relationship

Accepted Answer

A) must be positive. 
B) is calculated by dividing the variable on the horizontal axis by the variable on the vertical axis. 
C) must be negative. 
D) can never be measured. 
E) must be constant everywhere along the curve. 
A) must be positive. 
B) is calculated by dividing the variable on the horizontal axis by the variable on the vertical axis. 
C) must be negative. 
D) can never be measured. 
E) must be constant everywhere along the curve. C

Question 2

A curve shows that every time family income increases by $1,spending increases by $.75.This curve would

Accepted Answer

A) have a negative slope with decreasing absolute value. 
B) have a positive slope with increasing absolute value. 
C) have a negative slope with increasing absolute value. 
D) have a positive slope with decreasing absolute value. 
E) be a straight line with a positive slope. 
A) have a negative slope with decreasing absolute value. 
B) have a positive slope with increasing absolute value. 
C) have a negative slope with increasing absolute value. 
D) have a positive slope with decreasing absolute value. 
E) be a straight line with a positive slope. A

Question 3

Graph the relationship between X and Y such that the relationship between X and Y is linear and positive.
(A)On this graph,show what happens to Y if X increases.
(B)Suppose there is a third variable,Z,that causes Y to decrease (for any given value of X)whenever Z increases.Show what happens to the relationship between X and Y.

Accepted Answer

Line 1 in the figure below shows the linear and positive relationship between X and Y.An increase in X causes a movement from A to B along line 1.The increase in Z causes the shift from line 1 to line 2.Notice that this is the same as saying that the value of Y decreases for any given value of X.

Question 4

Consider a straight line with a slope of +1 that intersects the origin.It dissects the positive X-Y quadrant.Select any point on the line.What must be true about the distance between the origin and the X coordinate and between the origin and the Y coordinate?

Accepted Answer

The distan

Question 5

Exhibit 2A-6  
-Exhibit 2A-6 shows the relationship between the price of sodas and the quantities that two families are willing to buy.Suppose that both families are willing to buy more sodas while the soda price remain constant.Which of the following is correct?

Accepted Answer

A) A shift of both curves to the right 
B) A shift of both curves to the left 
C) A shift of the curve for Family A to the right and a shift of the curve for Family B to the left 
D) A shift of the curve for Family B to the right and a shift of the curve for Family A to the left 
E) A movement along each of the two curves 
A) A shift of both curves to the right 
B) A shift of both curves to the left 
C) A shift of the curve for Family A to the right and a shift of the curve for Family B to the left 
D) A shift of the curve for Family B to the right and a shift of the curve for Family A to the left 
E) A movement along each of the two curves

Question 6

Exhibit 2A-4  
-Refer to Exhibit 2A-4.The slope of the relationship between X and Y is

Accepted Answer

A) positive. 
B) negative. 
C) zero. 
D) infinity. 
E) less than -1. 
A) positive. 
B) negative. 
C) zero. 
D) infinity. 
E) less than -1.

Question 7

Suppose the value of one variable rises while the value of another variable falls; then the slope of the relationship between the two variables is between 0 and 1.

Accepted Answer

A) True 
 B)False

Question 8

Exhibit 2A-7  
-Exhibit 2A-7 shows the relationship between X and Y.The slope of the relationship is

Accepted Answer

A) positive,and the slope increases with Y. 
B) positive,and the slope decreases with Y. 
C) equal to -1. 
D) negative,and the slope increases with Y. 
E) negative,and the slope decreases with Y. 
A) positive,and the slope increases with Y. 
B) positive,and the slope decreases with Y. 
C) equal to -1. 
D) negative,and the slope increases with Y. 
E) negative,and the slope decreases with Y.

Question 9

A positive relationship represents a situation where an increase in one variable is associated with an increase in the other variable.Draw three graphs that represent a positive relationship.

Accepted Answer

The answer of A positive relationship represents a situation where...

Question 10

Exhibit 2A-1  
-According to Exhibit 2A-1,in 2008 the

Accepted Answer

A) inflation rate was close to 5 percent,and the unemployment rate was about 7 percent. 
B) unemployment rate and the inflation rate were equal. 
C) inflation rate was close to 6 percent,and the unemployment rate was above 2 percent. 
D) inflation rate was close to 2 percent,and the unemployment rate was close to 6 percent. 
E) inflation rate was above 10 percent,and the unemployment rate was close to 2 percent. 
A) inflation rate was close to 5 percent,and the unemployment rate was about 7 percent. 
B) unemployment rate and the inflation rate were equal. 
C) inflation rate was close to 6 percent,and the unemployment rate was above 2 percent. 
D) inflation rate was close to 2 percent,and the unemployment rate was close to 6 percent. 
E) inflation rate was above 10 percent,and the unemployment rate was close to 2 percent.

Question 11

Exhibit 2A-2  
-Suppose in 2010,on average,10 million people were unemployed.According to Exhibit 2A-2,how many of these people had been unemployed for less than five weeks?

Accepted Answer

A) 3.2 million 
B) 3.3 million 
C) 3.5 million 
D) 32 million 
E) 33 million 
A) 3.2 million 
B) 3.3 million 
C) 3.5 million 
D) 32 million 
E) 33 million

Question 12

Refer to the table below,which shows data for the United States.   (A)Construct a time-series plot of the unemployment rate.
(B)Construct a time-series plot of the inflation rate.
(C)Construct a scatter plot of the data.Is there any apparent correlation between the inflation rate and the unemployment rate in these data?

Accepted Answer

(A) A time-series plot of the unemployme

Question 13

Refer to the table below.Analyze the data on the number of meals served at small and large restaurants.The number of meals served will vary with the number of cooks employed at the  restaurant.   (A)Show the relationship between cooks and meals served by graphing two curves with cooks on the horizontal axis and the number of meals on the vertical axis.How do the slopes of the curves change as more cooks are employed?
(B)Is the change in the number of cooks a shift in the curve or a movement along the curve?
(C)Is the change in the size of the restaurant a shift in the curve or a movement along the curve?

Accepted Answer

(A) The relationship between cooks and m

Question 14

A two-dimensional graph cannot be used to show what will happen to the relationship between X and Y if any of the ceteris paribus assumptions change.

Accepted Answer

A) True 
 B)False

Question 15

Exhibit 2A-3  
-In Exhibit 2A-3,the curve shows

Accepted Answer

A) a constant relationship. 
B) a direct relationship. 
C) a straight-line relationship. 
D) an inverse relationship. 
E) normative economics. 
A) a constant relationship. 
B) a direct relationship. 
C) a straight-line relationship. 
D) an inverse relationship. 
E) normative economics.

Question 16

Exhibit 2A-8  
-There is a linear relationship between X and Y in Exhibit 2A-8.

Accepted Answer

A) True 
 B)False

Question 17

Exhibit 2A-5  
-Refer to Exhibit 2A-5.Which of the following would best explain the shift from line 1 to line 2?

Accepted Answer

A) An increase in X 
B) A decline in Y 
C) A decrease in X 
D) A change in a third variable,Z,which affects the relationship between Y and X 
E) An increase in the slope 
A) An increase in X 
B) A decline in Y 
C) A decrease in X 
D) A change in a third variable,Z,which affects the relationship between Y and X 
E) An increase in the slope

Question 18

An inverse relationship between two variables indicates a

Accepted Answer

A) causation. 
B) constant slope. 
C) positive slope. 
D) negative slope. 
A) causation. 
B) constant slope. 
C) positive slope. 
D) negative slope.

Question 19

The table below shows the inflation rate for the period 2005 through 2010.Suppose you wanted to show that there was not much variation in the inflation rate over this period.How would you represent this table in a graph? Suppose you wanted to show that there was a large amount of variation during this period.How would you represent this table in a graph?

Accepted Answer

The figure below is drawn such that the

Question 20

Exhibit 2A-3  
-In Exhibit 2A-3,the curve has a

Accepted Answer

A) positive slope with decreasing absolute value. 
B) negative slope with decreasing absolute value. 
C) negative slope with increasing absolute value. 
D) constant negative slope. 
E) positive slope with increasing absolute value. 
A) positive slope with decreasing absolute value. 
B) negative slope with decreasing absolute value. 
C) negative slope with increasing absolute value. 
D) constant negative slope. 
E) positive slope with increasing absolute value.

Exam 31: Reading,understanding,and Creating Graphs

The slope of an inverse relationship

A curve shows that every time family income increases by $1,spending increases by $.75.This curve would

Consider a straight line with a slope of +1 that intersects the origin.It dissects the positive X-Y quadrant.Select any point on the line.What must be true about the distance between the origin and the X coordinate and between the origin and the Y coordinate?

Exhibit 2A-6 -Exhibit 2A-6 shows the relationship between the price of sodas and the quantities that two families are willing to buy.Suppose that both families are willing to buy more sodas while the soda price remain constant.Which of the following is correct?

Exhibit 2A-4 -Refer to Exhibit 2A-4.The slope of the relationship between X and Y is

Suppose the value of one variable rises while the value of another variable falls; then the slope of the relationship between the two variables is between 0 and 1.

Exhibit 2A-7 -Exhibit 2A-7 shows the relationship between X and Y.The slope of the relationship is

A positive relationship represents a situation where an increase in one variable is associated with an increase in the other variable.Draw three graphs that represent a positive relationship.

Exhibit 2A-1 -According to Exhibit 2A-1,in 2008 the

Exhibit 2A-2 -Suppose in 2010,on average,10 million people were unemployed.According to Exhibit 2A-2,how many of these people had been unemployed for less than five weeks?

A two-dimensional graph cannot be used to show what will happen to the relationship between X and Y if any of the ceteris paribus assumptions change.

Exhibit 2A-3 -In Exhibit 2A-3,the curve shows

Exhibit 2A-8 -There is a linear relationship between X and Y in Exhibit 2A-8.

Exhibit 2A-5 -Refer to Exhibit 2A-5.Which of the following would best explain the shift from line 1 to line 2?

An inverse relationship between two variables indicates a

Exhibit 2A-3 -In Exhibit 2A-3,the curve has a

The Central Idea

Observing and Explaining the Economy

The Supply and Demand Model

Subtleties of the Supply and Demand Model: Price Floors,price Ceilings,and Elasticity

The Demand Curve and the Behavior of Consumers

The Supply Curve and the Behavior of Firms

The Interaction of People in Markets

Costs and the Changes at Firms Over Time

The Rise and Fall of Industries

Monopoly

Product Differentiation, monopolistic Competition, and Oligopoly

Antitrust Policy and Regulation

Labor Markets

Taxes, transfers, and Income Distribution

Public Goods, externalities, and Government Behavior

Capital and Financial Markets

Macroeconomics: the Big Picture

Measuring the Production, income, and Spending of Nations

The Spending Allocation Model

Unemployment and Employment

Productivity and Economic Growth

Money and Inflation

The Nature and Causes of Economic Fluctuations

The Economic Fluctuations Model

Using the Economic Fluctuations Model

Fiscal Policy

Monetary Policy

Economic Growth and Globalization

International Trade

International Finance

Consumer Theory With Indifference Curves

Producer Theory With Isoquants

Present Discounted Value

The Miracle of Compound Growth

Deriving the Growth Accounting Formula

Deriving the Formula for the Keynesian Multiplier and the Forward-Looking Consumption Model

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