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.

Accepted Answer

As X increases, the Y values decrease, indicating an inverse relationship between the X and Y variables.

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.

Accepted Answer

The slope of a line is calculated using the formula (y2-y1)/(x2-x1). Substituting the given coordinates, the slope is (2-6)/(1-3) = -4/-2 = 2.

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.

Accepted Answer

From the given graph, we can see that the line CD is sloping downwards from left to right, which means it has a negative slope. Therefore, the correct answer is C) negative.

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.

Accepted Answer

People with higher annual incomes are less likely to spend a significant portion of their money on second-hand clothes, creating an inverse relationship between their income and 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.

Accepted Answer

Basic economic analysis typically concerns the relationship between two variables, both of which have positive values. This is because economics is concerned with the production, consumption, and distribution of goods and services, all of which are positive activities. While economic analysis can involve variables with negative values (such as debt or losses), the focus is generally on the positive aspects of economic activity. Option A and D are incorrect because economic analysis does not require that one variable has negative or decreasing values, and option B is incorrect because it is unlikely that both variables in an economic analysis would have negative values.

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.

Accepted Answer

The slope is actually the ratio of the change in the variable on the vertical axis to the change in the variable on the horizontal axis, not the other way around.

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.

Accepted Answer

The straight line CD indicates a negative slope, meaning as X increases, Y decreases, showing a negative relationship between the variables.

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.

Accepted Answer

The ratio of the change in the variable on the vertical axis to the change in the variable on the horizontal axis is the slope. This is a fundamental concept in calculus and is used to calculate the rate of change of a curve at a specific point.

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.

Accepted Answer

The slope of a straight line remains constant, regardless of 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.

Accepted Answer

An upward-sloping line or curve is used to illustrate a direct relationship between two variables. As one variable increases, the other variable also increases.

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.

Accepted Answer

We can determine the slope of a straight line using the formula: 
slope = (change in y) / (change in x)

If we consider points A and B in Exhibit 1A-3, we can see that the change in y is 2 and the change in x is 4. Therefore, the slope of line AB is:

slope = (change in y) / (change in x)
slope = 2 / 4
slope = 1/2

So, the best choice is C) 1/2.

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.

Accepted Answer

The slope of a straight line is determined by the rise over run. If line AB is straight and has a positive slope, it means that as you move from point A to point B, the line rises, indicating a positive slope.

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.

Accepted Answer

A direct relationship means that as one variable increases, so does the other variable. This is the opposite of an inverse relationship where an increase in one variable leads to a decrease in the other variable. Causation refers to the relationship between cause and effect, and a horizontal line would indicate no relationship between the variables.

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.

Accepted Answer

As X increases, Y also increases. This means that there is a positive correlation between X and Y, indicating a direct relationship.

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.

Accepted Answer

Straight line CD shows a direct relationship between X and Y, as the values of Y increase as the values of X increase.

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.

Accepted Answer

The straight line AB shows a direct relationship between variable X and variable Y, where increasing values for X will cause the values of Y to also increase. This is known as a positive correlation between the two variables. Option A is incorrect as there is a relationship shown between the variables. Option B is incorrect as it suggests an inverse correlation between the variables, which is not supported by the exhibit. Option D is also incorrect as it suggests a negative correlation between the variables which is not shown in the exhibit.

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.

Accepted Answer

A direct relationship (also known as a positive relationship) exists when one variable increases and the other variable also increases. Therefore, choice C is the best choice.

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.

Accepted Answer

The relationship between the X and Y variables is direct, as an increase in X results in a corresponding increase in Y.

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.

Accepted Answer

The straight line AB in Exhibit 1A-1 indicates a positive correlation between X and Y. As X increases, Y also increases. Therefore, the higher the values of X, the higher the values of Y.

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.

Accepted Answer

The answer of Exhibit 1A-3 Straight line
 
-As shown in...

Quiz 19: Applying graphs to economics

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:

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

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

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

Basic economic analysis typically concerns:

Which of the following statements is not correct?

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

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:

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

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

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

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

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

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:

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

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

A direct relationship exists when:

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:

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

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