Deck 19: Applying graphs to economics

Question 1

Exhibit 1A-4 Straight line

In Exhibit 1A-4,as X increases along the horizontal axis,corresponding to points C-D on the line,the Y values decrease.The relationship between the X and Y variables is:

A)direct.
B)inverse.
C)independent.
D)variable.

Answer 1

B

Question 2

If the coordinates are x1=3,y1=6 and x2=1,y2=2.The slope of the line is:

A)1.
B)2.
C)3.
D)6.

Answer 2

B

Question 3

Exhibit 1A-4 Straight line

In Exhibit 1A-4,the slope of straight line CD is:

A)positive.
B)zero.
C)negative.
D)variable.

Answer 3

C

Question 4

Which of the following pairs is the most likely to exhibit an inverse relationship?

A)The amount of time you spend studying and your final marks.
B)Waiter's tips and her service.
C)The annual income and demand for overseas travel.
D)People's annual income and their expenditure on second-hand clothes.

Question 5

Basic economic analysis typically concerns:

A)the relationship between two variables, one of which has negative values.
B)the relationship between two variables, both of which have negative values.
C)the relationship between two variables, both of which have positive values.
D)the relationship between two variables, one variable always increases and the other variable always decreases.

Question 6

Which of the following statements is not correct?

A)The slope is the ration of the rise to the run.
B)A direct relationship is one in which two variables change in the same direction.
C)Slope is the ratio of the change in variable on the horizontal axis to the change in the variable on the vertical axis.
D)An independent relationship is one in which two variables are unrelated.

Question 7

Exhibit 1A-4 Straight line

Straight line CD in Exhibit 1A-4 shows which of the following?

A)Increasing values for X increases the value of Y.
B)Decreasing values for X decreases the value of Y.
C)There is no association between X and Y.
D)Variables X and Y are negatively related.

Question 8

Measured between two points on a curve,the ratio of the change in the variable on the vertical axis to the change in the variable on the horizontal axis is the:

A)axis.
B)slope.
C)dependent curve.
D)independent curve.

Question 9

Exhibit 1A-3 Straight line

As shown in Exhibit 1A-3,the slope of straight line AB:

A)decreases with increases in X.
B)increases with increases in X.
C)increases with decreases in X.
D)remains constant with changes in X.

Question 10

An upward-sloping line or curve is used to illustrate:

A)the ceteris paribus assumption.
B)an inverse relationship.
C)two unrelated variables.
D)a direct relationship.

Question 11

Exhibit 1A-3 Straight line

In Exhibit 1A-3,the slope of straight line AB is:

A)1.
B)5.
C)1/2.
D)-1.
E)not determinable from the information provided.

Question 12

Exhibit 1A-3 Straight line

In Exhibit 1A-3,the slope of straight line AB is:

A)variable.
B)zero.
C)negative.
D)positive.
E)not determinable from the information provided.

Question 13

When one variable increases,the other variable increases - it is called:

A)an inverse relationship.
B)causation.
C)horizontal line.
D)a direct relationship.

Question 14

Exhibit 1A-2 Straight line

In Exhibit 1A-2,as X increases along the horizontal axis,corresponding to points C-D on the line,the Y values increase.The relationship between the X and Y variables is:

A)direct.
B)inverse.
C)independent.
D)variable.

Question 15

Exhibit 1A-2 Straight line

Straight line CD in Exhibit 1A-2 shows which of the following?

A)The relationship between X and Y are unknown.
B)The values of Y are independent from the values of X.
C)There is an inverse relationship between X and Y.
D)There is a direct relationship between X and Y.

Question 16

Exhibit 1A-1 Straight line

Straight line AB in Exhibit 1A-1 shows which of the following?

A)There is no relationship between variable X and variable Y.
B)Decreasing values for X will cause the values of Y to increase.
C)There is a direct relationship between X and Y.
D)There is a negative relationship between X and Y.

Question 17

A direct relationship exists when:

A)there is no association between two variables.
B)one variable increases and there is no change in the other variable.
C)one variable increases and the other variable increases.
D)one variable increases and the other variable decreases.

Question 18

Exhibit 1A-1 Straight line

In Exhibit 1A-1,as X increases along the horizontal axis,corresponding to points A-B on the line,the Y values increase.The relationship between the X and Y variables is:

A)direct.
B)inverse.
C)independent.
D)variable.

Question 19

Exhibit 1A-1 Straight line

Straight line AB in Exhibit 1A-1 shows which of the following?

A)X and Y have positive causation.
B)The higher the values of X, the higher the values of Y.
C)There is an inverse relationship between X and Y.
D)When values of X increase, values of Y are constant.

Question 20

Exhibit 1A-3 Straight line

As shown in Exhibit 1A-3,the intercept of straight line AB is:

A)1.
B)10.
C)20.
D)30.
E)not determinable from the information provided.

Question 21

A downward-sloping line has a negative slope.

Question 22

A direct relationship is a relationship between two variables in which they move in different directions (if one increases,the other decreases).

Question 23

Exhibit 1A-4 Straight line

In Exhibit 1A-4,the slope for straight line CD is:

A)5.
B)1.
C)-1.
D)-5.

Question 24

Exhibit 1A-6 Straight-line relationship

Which of the following would cause a shift in the relationship shown in Exhibit 1A-6?

A)A change in people's annual income.
B)A rise in people's expenditure on air travel.
C)Both a rise in income and a rise in expenditure on air travel.
D)A change in people's preferences in favour of air travel.

Question 25

In a graphic relationship,shifts in a curve are caused by a change in:

A)the slope of the curve.
B)a factor not measured on the axes of the graph.
C)one of the factors measured on either axes of the graph.
D)any factor, whether measured on the axes of the graph or not.

Question 26

Exhibit 1A-6 Straight-line relationship

What is the slope of the line shown in Exhibit 1A-6?

A)1/20.
B)1/10.
C)1/5.
D)1/2.

Question 27

The graph of a direct relationship will have a negative slope.

Question 28

An inverse relationship is a negative causation between two variables.

Question 29

Exhibit 1A-5 Straight line

In Exhibit 1A-5,the slope of the straight line A-D is:

A)zero.
B)1.
C)1/2.
D)-1.

Question 30

Exhibit 1A-5 Straight line

In Exhibit 1A-5,the slope of straight line A-D is:

A)positive.
B)zero.
C)negative.
D)variable.

Question 31

A graph can be used to illustrate the relationship between the price of compact discs and the quantity of compact discs demanded.If there is evidence that buyers' income also influences the demand for compact discs,then a movement along the curve can be caused by a change in the price of compact discs.

Question 32

Adding a third variable to a two dimensional graph:

A)makes it impossible to interpret the graph.
B)helps to show the effect of factors that are not on the graph.
C)creates unnecessary complexity and should be avoided.
D)provides a point of intersection.

Question 33

A horizontal line indicates an independent relationship between two variables.

Question 34

Exhibit 1A-5 Straight line

Straight line A-D in Exhibit 1A-5 shows which of the following?

A)Increasing values for X will increase the value of Y.
B)Increasing values for X will decrease the value of Y.
C)Increasing values for X does not affect the value of Y.
D)All of the above.

Question 35

A change in a third variable not on either axis of a graph is illustrated with:

A)a horizontal or vertical line.
B)a movement along a curve.
C)a shift of a curve.
D)a point of intersection.

Question 36

Direct relationships are illustrated using upward-sloping lines and curves.

Question 37

Exhibit 1A-5 Straight line

In Exhibit 1A-5,as X increases along the horizontal axis,corresponding to points A-D on the line,the Y values remain unchanged at 20 units.The relationship between the X and Y variables is:

A)direct.
B)inverse.
C)independent.
D)undefined.