Question 1

Exhibit 1-2  In Exhibit 1-2, when y is greater than 12, the

Accepted Answer

A) value of x is larger on curve A than on curve B 
B) value of x is smaller on curve A than on curve B 
C) value of x 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 2

Exhibit 1-3  In Exhibit 1-3, for any value of y, the

Accepted Answer

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

Question 3

Exhibit 1-2  In Exhibit 1-2, when x is greater than 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

Question 4

Exhibit 1-1  In Exhibit 1-1 the movement from point b to point c represents

Accepted Answer

A) an increase in x of 30 units and an increase in y of 10 units 
B) an increase in x of 10 units and an increase in y of 30 units 
C) an increase in x of 60 units and a decrease in y of 20 units 
D) an increase in x of 20 units and a decrease in y of 60 units 
E) an increase in x of 20 units and a decrease in y of 30 units

Question 5

The part of a graph that is most applicable to marginal analysis is the

Accepted Answer

A) origin 
B) slope 
C) horizontal axis 
D) dependent variable 
E) inverse relation

Question 6

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 7

Exhibit 1-1  In Exhibit 1-1 the movement from point a to point c represents

Accepted Answer

A) an increase in x of 30 units and an increase in y of 10 units 
B) an increase in x of 10 units and an increase in y of 30 units 
C) an increase in x of 60 units and a decrease in y of 20 units 
D) an increase in x of 20 units and a decrease in y of 60 units 
E) an increase in x of 20 units and a decrease in y of 30 units

Question 8

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

Question 9

Exhibit 1-8  The slope of the line in Exhibit 1-8 is

Accepted Answer

A) 0.1 
B) 1 
C) 10 
D) -0.1 
E) -10

Question 10

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

Question 11

The slope of a horizontal line is

Accepted Answer

A) infinitely large 
B) zero 
C) positive 
D) negative 
E) infinitely small

Question 12

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.

Question 13

Exhibit 1-3  In Exhibit 1-3, for any value of x, 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 increasing 
E) slope of line B is negative

Question 14

The slope of a steep upward-sloping line is a smaller value than the slope of a nearly flat upward-sloping line.

Accepted Answer

A) True 
 B)False

Question 15

One economic application of the slope of a line is

Accepted Answer

A) measuring unlimited wants 
B) behavioral analysis 
C) marginal analysis 
D) allocative efficiency 
E) rational self-interest

Question 16

The slope of a line

Accepted Answer

A) can only be calculated for straight lines 
B) varies at different points along a straight line 
C) indicates whether or not there is a causal relationship between variables 
D) is independent of the units of measurement used 
E) indicates how much the vertical variable changes for a given change in the horizontal variable

Question 17

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 18

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 19

Exhibit 1-15  Refer to Exhibit 1-15.The reason that Line (a)would shift to the position of Line (b)is

Accepted Answer

A) a change in quantity 
B) a change in price 
C) a change in an assumption about the relationship between the two variables observed 
D) a change from a positive relation to a negative relation 
E) a change from a negative relation to a positive relation

Question 20

The slope of a vertical line is

Accepted Answer

A) infinitely large 
B) zero 
C) positive 
D) negative 
E) infinitely small

Exam 1: Appendix--Understanding Graphs

Exhibit 1-2 In Exhibit 1-2, when y is greater than 12, the

Exhibit 1-3 In Exhibit 1-3, for any value of y, the

Exhibit 1-2 In Exhibit 1-2, when x is greater than 10, the

Exhibit 1-1 In Exhibit 1-1 the movement from point b to point c represents

The part of a graph that is most applicable to marginal analysis is the

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

Exhibit 1-1 In Exhibit 1-1 the movement from point a to point c represents

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

Exhibit 1-8 The slope of the line in Exhibit 1-8 is

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

The slope of a horizontal line is

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

Exhibit 1-3 In Exhibit 1-3, for any value of x, the

The slope of a steep upward-sloping line is a smaller value than the slope of a nearly flat upward-sloping line.

One economic application of the slope of a line is

The slope of a line

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.

Exhibit 1-15 Refer to Exhibit 1-15.The reason that Line (a) would shift to the position of Line (b) is

The slope of a vertical line is