Chapter 1 Appendix

1. If an increase in one variable is associated with a decrease in another variable, then we can conclude that the variables are
A.nonlinear
B.directly related
C.inversely related
D.positively related


2. The ratio of the absolute vertical change to the absolute horizontal change between two points of a straight line is the
A.slope
B.vertical intercept
C.horizontal intercept
D.point of tangency


3. There are two sets of x, y points on a straight line in a two-variable graph, with y on the vertical axis and x on the horizontal axis. If one set of points was (0, 5) and the other set (5, 20), the linear equation for the line would be
A.y = 5x
B.y = 5 + 3x
C.y = 5 + 15x
D.y = 5 + .33x


4. In a two-variable graph of data on the price and quantity of a product, economists place
A.price on the horizontal axis because it is the independent variable and quantity on the vertical axis because it is the dependent variable
B.price on the vertical axis because it is the dependent variable and quantity on the horizontal because it is the independent variable
C.price on the vertical axis even though it is the independent variable and quantity on the horizontal axis even though it is the dependent variable
D.price on the horizontal axis even though it is the dependent variable and quantity on the vertical axis even though it is the independent variable


5. In a two-dimensional graph of the relationship between two economic variables, an assumption is usually made that
A.both variables are linear
B.both variables are nonlinear
C.other variables are held constant
D.other variables are permitted to change


6. When the slope of a straight line to a point tangent to a nonlinear curve is zero, then the straight line is
A.vertical
B.horizontal
C.upward sloping
D.downward sloping


7.
R-1 1a

There is an inverse relationship between the independent and dependent variable in data sets
A.1 and 4
B.2 and 3
C.1 and 3
D.2 and 4



8.
R-1 1a

The vertical intercept is 4 in data set
A.1
B.2
C.3
D.4



9.
R-1 1a

The linear equation for data set 1 is
A.B = 3A
B.B = 1 + 3A
C.B = 1 + .33A
D.A = 1 + .33B



10.
R-1 1a

The linear equation for data set 2 is
A.C = 12 - 1.25D
B.D = 12 + 1.25C
C.D = 12 - .80C
D.C = 12 - .80D



11.
R-2 1b

The variables A and B are:
A.positively related
B.negatively related
C.indirectly related
D.nonlinear



12.
R-2 1b

The slope of the line is
A..33
B..67
C.1.50
D.3.00



13.
R-2 1b

The vertical intercept is
A.80
B.60
C.40
D.20



14.
R-2 1b

The linear equation for the slope of the line is
A.A = 20 + .33B
B.B = 20 + .33A
C.A = 20 + .67B
D.B = 20 + .67A



15.
R-3 1c

The slope of the line tangent to the curve at point A is
A.2
B.-2
C.-1.5
D.-0.5



16.
R-3 1c

The slope of the line tangent to the curve at point B is
A.-2
B.2
C.3
D.0.5



17.
R-3 1c

The slope of the line tangent to the curve at point
C is
A.-1
B.1
C.0
D.undefined



18. Assume that the relationship between concert ticket prices and attendance is expressed in the equation P = 25 - 1.25Q, where P equals ticket price and Q equals concert attendance in thousands of people. On the basis of this equation, it can be said that
A.more people will attend the concert when the price is high compared to when the price is low
B.if 12,000 people attended the concert, then the ticket price was $10
C.if 18,000 people attend the concert, then entry into the concert was free
D.an increase in ticket price by $5 reduces concert attendance by 1000 people


19. If you know that the equation relating consumption (C) to income (Y) is C = $7,500 + .2Y, then
A.consumption is inversely related to income
B.consumption is the independent variable and income is the dependent variable
C.if income is $15,000, then consumption is $10,500
D.if consumption is $30,000, then income is $10,000


20. If the dependent variable changes by 22 units when the independent variable changes by 12 units, then the slope of the line is
A.0.56
B.1.83
C.2.00
D.3.27



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