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UNIVERSITY / INSTITUTE: Purdue University

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CLASS / COURSE: ECON 25100: Microeconomics

QUESTION DESCRIPTION:

Review of Graphs

1. If two variables are directly related they will always graph as:

A. A straight line

B. A downsloping line

C. An upsloping line

D. Parallel lines

2. If an inverse relationship exists between two variables, then:

A. As one variable increases, the other decreases

B. As one variable increases, so does the other

C. The two variables are close substitutes for each other

D. Both variables increase over time

3. The slope of a straight line is the ratio of the:

A. Absolute horizontal change to the absolute vertical change between two points on the line

B. Absolute vertical change to the absolute horizontal change between two points on the line

C. Horizontal intercept to the absolute vertical change

D. Vertical intercept to the absolute horizontal change

4. 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 (0,6) and the other set (6,18), the linear equation for the line would be:

A. y = 6x

B. y = 6 + .5x

C. y = 6 + 1x

D. y = 6 + 2x

5. 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 (0,75) and the other set of points was (75,25), the linear equation for the line would be:

A. y = 75 - .66x

B. y = 75 - .5x

C. y = 75 - 1.5x

D. y = 75 - .33x

6. The question(s) below are based on the following four sets of data-pairs: (1), (2), (3), and (4). In each set, the independent variable is in the left column and the dependent variable is in the right column

Which of the sets show an inverse relationship between the independent and dependent variable?

A. 1 and 3

B. 2 and 3

C. 3 and 4

D. 2 and 4

7. The question(s) below are based on the following four sets of data-pairs: (1), (2), (3), and (4). In each set, the independent variable is in the left column and the dependent variable is in the right column

The slope of the line for data set 2 above is:

A. .10

B. .20

C. 5

D. 10

8. The question(s) below are based on the following four sets of data-pairs: (1), (2), (3), and (4). In each set, the independent variable is in the left column and the dependent variable is in the right column

The vertical intercept is 12 in which of the above data set:

A. 1

B. 2

C. 3

D. 4

9. The question(s) below are based on the following four sets of data-pairs: (1), (2), (3), and (4). In each set, the independent variable is in the left column and the dependent variable is in the right column

The linear equation for data set 1 above is:

A. B = 7A

B. A = .14B

C. B = 6 - 7B

D. B = 6 - .14A

10. In a demand graph showing the relationship between price and how much of a good the buyers will buy, the convention that economists follow is to place price on the:

A. Horizontal axis because it is the independent variable

B. Vertical axis because it is the dependent variable

C. Vertical axis even though it is the independent variable

D. Horizontal axis even though it is the dependent variable

11. A relationship illustrated by an upsloping graph means that an:

A. Increase in the value of one variable causes the value of the other to decrease

B. Decrease in the value of one variable causes the value of the other to decrease

C. Decrease in the value of one variable causes the value of the other to increase

D. Increase in the value of one variable causes no change in the other variable

12. When illustrating graphically the relationship between the price of a stock and the quantity of a stock purchased, it is usually the case that:

A. Price is placed on the horizontal axis of the graph

B. Quantity is on the vertical axis of the graph

C. Other variables are assumed to be held constant

D. Other variables are assumed to vary

13. On a graph of two variables, X and Y, ceteris paribus means that:

A. X is inversely related to Y

B. X is positively related to Y

C. X and Y are independent

D. Other variables not shown are held constant

14. When variables A and B are negatively correlated, it implies that:

A. A causes B

B. B causes A

C. A is unrelated to B

D. A and B may or may not be causally related

15. If a linear relation is described by the equation was C = 35 - 5D, then the slope of the line would be:

A. 35 and the intercept 5

B. -5 and the intercept 35

C. 5 and the intercept 35

D. -35 and the intercept 5

16. If you knew that the vertical intercept for a straight line was 15, that the slope was -.5, and that the independent variable had a value of 8, the value of the dependent variable would be:

A. 8

B. 9

C. 10

D. 11

17. If you knew that the vertical intercept for a straight line was 150 and that the slope of the line was 4, then the dependent variable would be 250 when the value of the independent variable is:

A. 15

B. 20

C. 25

D. 30

18. Refer to the above graph. The slope of the line tangent to the curve at point A is:

A. 0

B. .5

C. 2

D. 4

19. Refer to the above graph. The slope of the line tangent to the curve at point B is:

A. .50

B. .75

C. 1.25

D. 2.00

20. Refer to the above graph. The slope of the line tangent to the curve at point C is:

A. 0

B. -.5

C. -1.0

D. -2.0

SOLUTION DESCRIPTION:
Completed Solution is attached. Click on Buy button and then download file to get full solution.

SUBJECTS / CATEGORIES:

1. Business Economics

2. Economics

3. Microeconomics

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