Deck 2: Applying Graphs to Economics

Question 1

Narrbegin Exhibit A1.3 Straight line Narrend
As shown in Exhibit A1.3, the intercept of straight line AB is:

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

Answer 1

B

Question 2

Narrbegin Exhibit A1.2 Straight line Narrend
Straight line CD in Exhibit A1.2 shows which of the following?

A) The relationship between X and Y is 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 negative relationship between X and Y.

Answer 2

D

Question 3

Narrbegin Exhibit A1.1 Straight line Narrend
In Exhibit A1.1, 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) positive.
B) inverse.
C) independent.
D) variable.

Answer 3

A

Question 4

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.

Question 5

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

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

Question 6

A positive 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 too.
D) one variable increases and the other variable decreases.

Question 7

Narrbegin Exhibit A1.3 Straight line Narrend
As shown in Exhibit A1.3, 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 8

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 the 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 9

Narrbegin Exhibit A1.3 Straight line Narrend
In Exhibit A1.3, the slope of straight line AB is:

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

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 positive relationship.

Question 11

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 12

Narrbegin Exhibit A1.4 Straight line Narrend
Straight line CD in Exhibit A1.4 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 13

Narrbegin Exhibit A1.1 Straight line Narrend
Straight line AB in Exhibit A1.1 shows which of the following?

A) X and Y have negative 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 14

Narrbegin Exhibit A1.4 Straight line Narrend
In Exhibit A1.4, the slope of straight line CD is:

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

Question 15

Narrbegin Exhibit A1.4 Straight line Narrend
In Exhibit A1.4, 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.

Question 16

Narrbegin Exhibit A1.2 Straight line Narrend
In Exhibit A1.2, 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.

Question 17

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 18

Narrbegin Exhibit A1.1 Straight line Narrend
Straight line AB in Exhibit A1.1 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 positive relationship between X and Y.
D) There is a negative relationship between X and Y.

Question 19

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 his/her service.
C) The annual income and demand for overseas travel.
D) People's annual income and their expenditure on second-hand clothes.

Question 20

Narrbegin Exhibit A1.3 Straight line Narrend
In Exhibit A1.3, the slope of straight line AB is:

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

Question 21

Narrbegin Exhibit A1.4 Straight line Narrend
In Exhibit A1.4, the slope for straight line CD is:

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

Question 22

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 23

Narrbegin Exhibit A1.5 Straight line Narrend
In Exhibit A1.5, the slope of the straight line A-D is:

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

Question 24

An inverse relationship is a negative causation between two variables.

Question 25

Narrbegin Exhibit A1.6 Straight-line relationship Narrend
What is the slope of the line shown in Exhibit A1.6?

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

Question 26

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

Question 27

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

Question 28

Narrbegin Exhibit A1.5 Straight line Narrend
Straight line A-D in Exhibit A1.5 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 29

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 30

Narrbegin Exhibit A1.5 Straight line Narrend
In Exhibit A1.5, 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.

Question 31

A downward-sloping line has a negative slope.

Question 32

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 33

Narrbegin Exhibit A1.5 Straight line Narrend
In Exhibit A1.5, the slope of straight line A-D is:

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

Question 34

A horizontal line indicates an independent relationship between two variables.

Question 35

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

Question 36

Narrbegin Exhibit A1.6 Straight-line relationship Narrend
Which of the following would cause a shift in the relationship shown in Exhibit A1.6?

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 37

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.