How to Read and Understand Graphs

How to Read and Understand GraphsThe four criteria that are frequently used in judging the outcome of economic policy are A) efficiency, equity, stability, and economic growth. B) efficiency, equality, stability, and economic growth. C) efficiency, equality, profitability, and stability. D) efficiency, equity, profitability, and stability. Answer: A Diff: 1 Topic: The Method of Economics Skill: Fact 42) You have noticed that there is an increase in the number of homeless people in your city. At the same time you observe that there are also a number of vacant apartments. You believe that the government could reduce the number of homeless people if landlords were required to rent their apartments for less than they are currently charging. This policy recommendation would be motivated by concerns over A) efficiency. B) equity. C) economic growth. D) stability. Answer: B Diff: 3 Topic: The Method of Economics Skill: Conceptual AACSB: Reflective Thinking 43) There is a possibility that a national sales tax will be implemented. Many economists argue that items such as food and clothing should be exempt from such a tax because low-income people spend a greater percentage of their income on these goods than do high -income individuals. This argument is motivated by concerns over A) economic growth. B) economic stability. C) efficiency. D) equity. Answer: D Diff: 3 Topic: The Method of Economics Skill: Conceptual AACSB: Reflective Thinking 44) Which of the following is an example of a normative statement? A) The unemployment rate is six percent. B) There should be no unemployment in an advanced industrial society. C) Higher prices cause consumers to buy less. D) Equilibrium price implies that quantity demanded equals quantity supplied. Answer: B Diff: 2 Topic: The Method of Economics Skill: Conceptual AACSB: Reflective Thinking 18 Contact: 45) Which of the following is an example of a positive statement? A) There should be no unemployment in an advanced industrial society. B) Higher prices cause consumers to purchase less. C) Consumption should be distributed fairly in society. D) People should pollute as little as possible. Answer: B Diff: 2 Topic: The Method of Economics Skill: Conceptual AACSB: Reflective Thinking 2 True/False 1) Normative economics looks at outcomes of economic behavior and evaluates them as good or bad. Answer: TRUE Diff: 2 Topic: The Method of Economics Skill: Conceptual AACSB: Reflective Thinking 2) Positive economics looks at outcomes of economic behavior and evaluates them as good or bad. Answer: FALSE Diff: 2 Topic: The Method of Economics Skill: Conceptual AACSB: Reflective Thinking 3) An efficient economy is one that produces what consumers demand and does so at the least possible cost. Answer: TRUE Diff: 2 Topic: The Method of Economics Skill: Definition 4) ȈCeteris paribusȈȱliterally translated means,ȱȈbuyer beware.Ȉ Answer: FALSE Diff: 2 Topic: The Method of Economics Skill: Definition 5) Positive economics seeks to understand behavior, but not make judgments. Answer: TRUE Diff: 2 Topic: The Method of Economics Skill: Conceptual AACSB: Reflective Thinking 19 6) Stability implies a steady rate of economic growth and low inflation. Answer: TRUE Diff: 2 Topic: The Method of Economics Skill: Conceptual AACSB: Reflective Thinking 7) The compilation of data to describe phenomena and facts is known as descriptive economics. Answer: TRUE Diff: 2 Topic: The Method of Economics Skill: Definition 1.4 Appendix: How to Read and Understand Graphs 1 Multiple Choice Refer to the information provided in Figure 1.1 below to answer the questions that follow. Figure 1.1 1) Refer to Figure 1.1. There is ________ relationship between the daily temperature and the number of gallons of ice cream purchased. A) a negative B) a positive C) either a negative or a positive D) an inverse Answer: B Diff: 2 Topic: Appendix: How to Read and Understand Graphs Skill: Analytic AACSB: Analytic Skills 20 Refer to the information provided in Figure 1.2 below to answer the questions that follow. Figure 1.2 2) Refer to Figure 1.2. The slope of the line between Points A and B is A) 0.4. B) 1.2. C) 2.5. D) indeterminate from this information. Answer: A Diff: 2 Topic: Appendix: How to Read and Understand Graphs Skill: Analytic AACSB: Analytic Skills 3) If the slope of a straight line is -3. and if Y (the variable on the vertical axis) decreases by 6, then X (the variable on the horizontal axis) will A) increase by 2. B) decrease by 2. C) increase by 18. D) decrease by 18. Answer: A Diff: 2 Topic: Appendix: How to Read and Understand Graphs Skill: Analytic AACSB: Analytic Skills 21 Refer to the information provided in Figure 1.3 below to answer the questions that follow. Figure 1.3 4) Refer to Figure 1.3. The slope of the line is A) positive. B) negative. C) increasing at an increasing rate. D) decreasing at an increasing rate. Answer: A Diff: 2 Topic: Appendix: How to Read and Understand Graphs Skill: Analytic AACSB: Analytic Skills 5) Refer to Figure 1.3. The slope of the line between Points B and D is A) -0.33. B) -3. C) 0.33. D) 3. Answer: D Diff: 2 Topic: Appendix: How to Read and Understand Graphs Skill: Analytic AACSB: Analytic Skills 6) Refer to Figure 1.3. The slope of the line between Points D and C is A) -0.33. B) -3. C) 0.33. D) 3. Answer: D Diff: 2 Topic: Appendix: How to Read and Understand Graphs Skill: Analytic AACSB: Analytic Skills 7) Refer to Figure 1.3.ȱȱIf a 45 degree line were also graphed, the existing line shown on the graph would ________ it. A) lie above B) lie below C) cross D) indeterminant from this information Answer: A Diff: 3 Topic: Appendix: How to Read and Understand Graphs Skill: Analytic AACSB: Analytic Skills 22 8) Refer to Figure 1.3. At Point A, what is the value of Y? A) 10. B) 12. C) 15. D) indeterminate from this information Answer: B Diff: 2 Topic: Appendix: How to Read and Understand Graphs Skill: Analytic AACSB: Analytic Skills 9) Refer to Figure 1.3. At Point A the slope of the line is 3, so at Point D the slope would be A) greater than 3. B) less than 3. C) equal to 3. D) indeterminate from this information. Answer: C Diff: 2 Topic: Appendix: How to Read and Understand Graphs Skill: Analytic AACSB: Analytic Skills Refer to the information provided in Figure 1.4 below to answer the questions that follow. Figure 1.4 10) Refer to Figure 1.4. Which of the curves or lines has a slope that is first positive and then negative? A) A B) B C) C D) D Answer: B Diff: 2 Topic: Appendix: How to Read and Understand Graphs Skill: Analytic AACSB: Analytic Skills 23 11) Refer to Figure 1.4. Which of the curves or lines has a slope that is negative and then positive? A) A B) B C) C D) D Answer: A Diff: 2 Topic: Appendix: How to Read and Understand Graphs Skill: Analytic AACSB: Analytic Skills 12) Refer to Figure 1.4. Which of the following curves or lines has a zero slope throughout? A) A B) B C) C D) D Answer: C Diff: 2 Topic: Appendix: How to Read and Understand Graphs Skill: Analytic AACSB: Analytic Skills 13) Refer to Figure 1.4. Which of the curves or lines has an infinite slope throughout? A) A B) B C) C D) D Answer: D Diff: 2 Topic: Appendix: How to Read and Understand Graphs Skill: Analytic AACSB: Analytic Skills 14) Refer to Figure 1.4. At Point E in panel A, the slope is A) zero. B) infinite. C) negative. D) indeterminate from this information. Answer: A Diff: 2 Topic: Appendix: How to Read and Understand Graphs Skill: Analytic AACSB: Analytic Skills 15) The slope of a non-linear curve A) is always positive. B) must first increase then decrease. C) is not constant. D) is constant. Answer: C Diff: 1 Topic: Appendix: How to Read and Understand Graphs Skill: Fact 16) The slope of a horizontal line is A) negative. B) zero. C) continually changing. D) infinite. Answer: B Diff: 1 Topic: Appendix: How to Read and Understand Graphs Skill: Fact 24 17) If the slope of a straight line is 4 and if X (the variable on the horizontal axis) increases by 12, then Y (the variable on the vertical axis) will A) decrease by 3. B) decrease by 0.33. C) increase by 3. D) increase by 48. Answer: D Diff: 2 Topic: Appendix: How to Read and Understand Graphs Skill: Analytic AACSB: Analytic Skills 18) If the slope of a straight line is 4 and if Y (the variable on the vertical axis) decreases by 20, then X (the variable on the horizontal axis) A) increases by 5. B) decreases by 5. C) increases by 80. D) decreases by 80. Answer: B Diff: 2 Topic: Appendix: How to Read and Understand Graphs Skill: Analytic AACSB: Analytic Skills 19) The slope of a vertical line is A) zero. B) infinite. C) continually changing. D) negative. Answer: B Diff: 1 Topic: Appendix: How to Read and Understand Graphs Skill: Fact