Chapter 1A
Applying Graphs to Economics
MULTIPLE CHOICE
1. Topic: Direct relationship, Difficulty: E, Type: RE, Answer: c
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.
2. Topic: Direct relationship, Difficulty: M, Type: SA, Answer: a
An upward-sloping line or curve is used to illustrate:
a. a direct relationship.
b. an inverse relationship.
c. two unrelated variables.
d. the ceteris paribus assumption.
3. Topic: Direct relationship, Difficulty: E, Type: RE, Answer: a
Suppose two variables are directly related. If one variable rises, then the other variable:
a. also rises.
b. falls.
c. remains unchanged.
d. reacts unpredictably.
,4. Topic: Direct relationship, Difficulty: M, Type: SA, Answer: b
Which of the following pairs is the most likely to exhibit a direct relationship?
a. The price of gasoline and the amount of gasoline that people purchase.
b. Cholesterol levels and the likelihood of developing heart disease.
c. Outdoor temperature and heating oil sales.
d. Annual income and weekly pawn shop visits.
5. Topic: Direct relationship, Difficulty: E, Type: RE, Answer: a
A direct relationship is expressed graphically as a:
a. positively sloped line or curve.
b. negatively sloped line or curve.
c. horizontal line.
d. vertical line.
6. Topic: Inverse relationship, Difficulty: E, Type: RE, Answer: d
An inverse 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.
,7. Topic: Inverse relationship, Difficulty: M, Type: SA, Answer: d
Which of the following pairs is the most likely to exhibit an inverse relationship?
a. The amount of time you study and your grade point average.
b. People's annual income and their expenditure on personal computers.
c. Baseball players' salaries and their batting averages.
d. The price of a concert and the number of tickets people purchase.
8. Topic: Inverse relationship, Difficulty: E, Type: RE, Answer: d
When an inverse relationship is graphed, the resulting line or curve is:
a. horizontal.
b. vertical.
c. upward-sloping.
d. downward-sloping.
9. Topic: Independent relationship, Difficulty: M, Type: SA, Answer: d
What is used to illustrate an independent relationship between two variables?
a. An upward-sloping curve.
b. A downward-sloping curve.
c. A hill-shaped curve.
d. A horizontal or vertical line.
Exhibit 1 Straight line
, 40
B
30
Y value
20
A
10
0 10 20 30 40
X value
10. Topic: Direct relationship, Difficulty: E, Type: RE, Answer: c
Straight line AB in Exhibit 1 shows that:
a. increasing values for X will decrease the values of Y.
b. decreasing values for X will increase the values of Y.
c. there is a direct relationship between X and Y.
d. all of the above.
Applying Graphs to Economics
MULTIPLE CHOICE
1. Topic: Direct relationship, Difficulty: E, Type: RE, Answer: c
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.
2. Topic: Direct relationship, Difficulty: M, Type: SA, Answer: a
An upward-sloping line or curve is used to illustrate:
a. a direct relationship.
b. an inverse relationship.
c. two unrelated variables.
d. the ceteris paribus assumption.
3. Topic: Direct relationship, Difficulty: E, Type: RE, Answer: a
Suppose two variables are directly related. If one variable rises, then the other variable:
a. also rises.
b. falls.
c. remains unchanged.
d. reacts unpredictably.
,4. Topic: Direct relationship, Difficulty: M, Type: SA, Answer: b
Which of the following pairs is the most likely to exhibit a direct relationship?
a. The price of gasoline and the amount of gasoline that people purchase.
b. Cholesterol levels and the likelihood of developing heart disease.
c. Outdoor temperature and heating oil sales.
d. Annual income and weekly pawn shop visits.
5. Topic: Direct relationship, Difficulty: E, Type: RE, Answer: a
A direct relationship is expressed graphically as a:
a. positively sloped line or curve.
b. negatively sloped line or curve.
c. horizontal line.
d. vertical line.
6. Topic: Inverse relationship, Difficulty: E, Type: RE, Answer: d
An inverse 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.
,7. Topic: Inverse relationship, Difficulty: M, Type: SA, Answer: d
Which of the following pairs is the most likely to exhibit an inverse relationship?
a. The amount of time you study and your grade point average.
b. People's annual income and their expenditure on personal computers.
c. Baseball players' salaries and their batting averages.
d. The price of a concert and the number of tickets people purchase.
8. Topic: Inverse relationship, Difficulty: E, Type: RE, Answer: d
When an inverse relationship is graphed, the resulting line or curve is:
a. horizontal.
b. vertical.
c. upward-sloping.
d. downward-sloping.
9. Topic: Independent relationship, Difficulty: M, Type: SA, Answer: d
What is used to illustrate an independent relationship between two variables?
a. An upward-sloping curve.
b. A downward-sloping curve.
c. A hill-shaped curve.
d. A horizontal or vertical line.
Exhibit 1 Straight line
, 40
B
30
Y value
20
A
10
0 10 20 30 40
X value
10. Topic: Direct relationship, Difficulty: E, Type: RE, Answer: c
Straight line AB in Exhibit 1 shows that:
a. increasing values for X will decrease the values of Y.
b. decreasing values for X will increase the values of Y.
c. there is a direct relationship between X and Y.
d. all of the above.
