Question 1

If the dependent variable Y is directly related to the independent variable X, this means that changes in X cause changes in Y.

Accepted Answer

A) True 
 B)False

Question 2

NARRBEGIN: Exhibit 1-14
Exhibit 1-16
          
-Refer to exhibit 1-16. Which of the graphs illustrates an inverse or negative relationship between variable X and variable Y?

Accepted Answer

A)  a 
B)  b 
C)  c 
D)  d 
E)  e 
A)  a 
B)  b 
C)  c 
D)  d 
E)  e

Question 3

NARRBEGIN: Exhibit 1-5
Exhibit 1-7
  
-The slope of the straight line in Exhibit 1-5 is

Accepted Answer

A)  greater at point a than at point b 
B)  the same at points a and b 
C)  zero because the line is straight 
D)  negative because an inverse relation is shown 
E)  positive because the line lies to the right of the y-axis 
A)  greater at point a than at point b 
B)  the same at points a and b 
C)  zero because the line is straight 
D)  negative because an inverse relation is shown 
E)  positive because the line lies to the right of the y-axis

Question 4

The slope of an inverted U-shaped curve is infinity at the top of the curve.

Accepted Answer

A) True 
 B)False

Question 5

NARRBEGIN: Exhibit 1-9
Exhibit 1-11
  
-In Exhibit 1-9, the slope of the line is

Accepted Answer

A)  negative for all values of x 
B)  positive for all values of x 
C)  never zero 
D)  first negative, then positive as x increases 
E)  first rising, then falling as x increases 
A)  negative for all values of x 
B)  positive for all values of x 
C)  never zero 
D)  first negative, then positive as x increases 
E)  first rising, then falling as x increases

Question 6

The numerical value of the slope of a line depends in part on the units of measurement used.

Accepted Answer

A) True 
 B)False

Question 7

A straight line tangent to a curved line at a point

Accepted Answer

A)  crosses the curved line at that point 
B)  crosses the curved line at many points 
C)  has the same slope as the curved line at that point 
D)  is steeper than the curve at all other points 
E)  has a smaller slope than all other points on the curve 
A)  crosses the curved line at that point 
B)  crosses the curved line at many points 
C)  has the same slope as the curved line at that point 
D)  is steeper than the curve at all other points 
E)  has a smaller slope than all other points on the curve

Question 8

NARRBEGIN: Exhibit 1-14
Exhibit 1-16
          
-Refer to exhibit 1-16. Which of the graphs illustrates a direct or positive relationship between variable X and variable Y?

Accepted Answer

A)  a 
B)  b 
C)  c 
D)  d 
E)  e 
A)  a 
B)  b 
C)  c 
D)  d 
E)  e

Question 9

NARRBEGIN: Exhibit 1-2-2
Exhibit 1-5
  
-In Exhibit 1-2, curve A has a __________ slope that is __________ at every point.

Accepted Answer

A)  positive; constant 
B)  positive; changing 
C)  negative; constant 
D)  negative; changing 
E)  changing; constant 
A)  positive; constant 
B)  positive; changing 
C)  negative; constant 
D)  negative; changing 
E)  changing; constant

Question 10

A downward-sloping straight line has a decreasing slope.

Accepted Answer

A) True 
 B)False

Question 11

NARRBEGIN: Exhibit 1-2-1
Exhibit 1-2
  
-In Exhibit 1-2, at x = 10, the

Accepted Answer

A)  value of y is larger on curve A than on curve B 
B)  value of y is smaller on curve A than on curve B 
C)  value of y is the same on curve A as on curve B 
D)  slope of line A is negative 
E)  slope of line B is positive 
A)  value of y is larger on curve A than on curve B 
B)  value of y is smaller on curve A than on curve B 
C)  value of y is the same on curve A as on curve B 
D)  slope of line A is negative 
E)  slope of line B is positive

Question 12

If a given value of x is associated with a particular value of y,

Accepted Answer

A)  then x causes y 
B)  then y causes x 
C)  then x and y must be logically connected 
D)  there are no other variables that affect the value of y 
E)  there may be no causal relationship between x and y 
A)  then x causes y 
B)  then y causes x 
C)  then x and y must be logically connected 
D)  there are no other variables that affect the value of y 
E)  there may be no causal relationship between x and y

Question 13

If slope = 2 for a line on a graph with x on the horizontal axis and y on the vertical axis, then if

Accepted Answer

A)  x decreases by 4, y decreases by 8 
B)  x = -4, then y = -2 
C)  y decreases by 4, x decreases by 8 
D)  x = -4, y = -8 
E)  x increases by 4, y decreases by 8 
A)  x decreases by 4, y decreases by 8 
B)  x = -4, then y = -2 
C)  y decreases by 4, x decreases by 8 
D)  x = -4, y = -8 
E)  x increases by 4, y decreases by 8

Question 14

A curved line may have a positive slope or a negative slope, but it cannot have both positive and negative areas of slope.

Accepted Answer

A) True 
 B)False

Question 15

A functional relationship exists between two variables if the value of one variable depends on the value of the other variable.

Accepted Answer

A) True 
 B)False

Question 16

NARRBEGIN: Exhibit 1-4-1
Exhibit 1-4
  
-Which of the following must be true of line D in Exhibit 1-4?

Accepted Answer

A)  A decrease in P is associated with a decrease in Q. 
B)  An increase in P is associated with an increase in Q. 
C)  There is no relation between P and Q. 
D)  There is an inverse relationship between P and Q. 
E)  There is a direct relationship between P and Q. 
A)  A decrease in P is associated with a decrease in Q. 
B)  An increase in P is associated with an increase in Q. 
C)  There is no relation between P and Q. 
D)  There is an inverse relationship between P and Q. 
E)  There is a direct relationship between P and Q.

Question 17

NARRBEGIN: Exhibit 1-14
Exhibit 1-16
          
-Refer to exhibit 1-16. Which of the graphs illustrates no relationship between variable X and variable Y?

Accepted Answer

A)  a 
B)  b 
C)  c 
D)  d 
E)  e 
A)  a 
B)  b 
C)  c 
D)  d 
E)  e

Question 18

Most economics graphs reflect the relationship between how many economic variables?

Accepted Answer

A)  three 
B)  two 
C)  four 
D)  thirty 
E)  twenty 
A)  three 
B)  two 
C)  four 
D)  thirty 
E)  twenty

Question 19

NARRBEGIN: Exhibit 1-2-1
Exhibit 1-2
  
-In Exhibit 1-2, at x = 12, the

Accepted Answer

A)  value of y is larger on curve A than on curve B 
B)  value of y is smaller on curve A than on curve B 
C)  value of y is the same on curve A as on curve B 
D)  slope of line A is negative 
E)  slope of line B is positive 
A)  value of y is larger on curve A than on curve B 
B)  value of y is smaller on curve A than on curve B 
C)  value of y is the same on curve A as on curve B 
D)  slope of line A is negative 
E)  slope of line B is positive

Question 20

NARRBEGIN: Exhibit 1-4-2
Exhibit 1-6
  
-Along the curve in Exhibit 1-4,

Accepted Answer

A)  if P = $6, then Q = 8 
B)  if Q = 10, then P = $4 
C)  the slope is equal to -1 
D)  Q increases as P increases 
E)  there is a positive relationship between Q and P 
A)  if P = $6, then Q = 8 
B)  if Q = 10, then P = $4 
C)  the slope is equal to -1 
D)  Q increases as P increases 
E)  there is a positive relationship between Q and P

Exam 1: Appendix: Understanding Graphs

If the dependent variable Y is directly related to the independent variable X, this means that changes in X cause changes in Y.

NARRBEGIN: Exhibit 1-14 Exhibit 1-16 -Refer to exhibit 1-16. Which of the graphs illustrates an inverse or negative relationship between variable X and variable Y?

NARRBEGIN: Exhibit 1-5 Exhibit 1-7 -The slope of the straight line in Exhibit 1-5 is

The slope of an inverted U-shaped curve is infinity at the top of the curve.

NARRBEGIN: Exhibit 1-9 Exhibit 1-11 -In Exhibit 1-9, the slope of the line is

The numerical value of the slope of a line depends in part on the units of measurement used.

A straight line tangent to a curved line at a point

NARRBEGIN: Exhibit 1-14 Exhibit 1-16 -Refer to exhibit 1-16. Which of the graphs illustrates a direct or positive relationship between variable X and variable Y?

NARRBEGIN: Exhibit 1-2-2 Exhibit 1-5 -In Exhibit 1-2, curve A has a __________ slope that is __________ at every point.

A downward-sloping straight line has a decreasing slope.

NARRBEGIN: Exhibit 1-2-1 Exhibit 1-2 -In Exhibit 1-2, at x = 10, the

If a given value of x is associated with a particular value of y,

If slope = 2 for a line on a graph with x on the horizontal axis and y on the vertical axis, then if

A curved line may have a positive slope or a negative slope, but it cannot have both positive and negative areas of slope.

A functional relationship exists between two variables if the value of one variable depends on the value of the other variable.

NARRBEGIN: Exhibit 1-4-1 Exhibit 1-4 -Which of the following must be true of line D in Exhibit 1-4?

NARRBEGIN: Exhibit 1-14 Exhibit 1-16 -Refer to exhibit 1-16. Which of the graphs illustrates no relationship between variable X and variable Y?

Most economics graphs reflect the relationship between how many economic variables?

NARRBEGIN: Exhibit 1-2-1 Exhibit 1-2 -In Exhibit 1-2, at x = 12, the

NARRBEGIN: Exhibit 1-4-2 Exhibit 1-6 -Along the curve in Exhibit 1-4,

The Art and Science of Economic Analysis

Economic Tools and Economics Systems

Economic Decision Makers

Demand, Supply, and Markets

Elasticity of Demand and Supply

Consumer Choice and Demand

Production and Cost in the Firm

A: Perfect Competition

B: Perfect Competition

A: Monopoly

B: Monopoly

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital, Interest, and Corporate Finance

Transaction Costs, Imperfect Information, and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Externalities and the Environment

Income Distribution and Poverty

International Trade

International Finance

Economic Development

Filters

NARRBEGIN: Exhibit 1-2-2 Exhibit 1-5 -In Exhibit 1-2, curve A has a slope that is at every point.