24) A graph showing the values of an economic variable for different groups in a population at a
point in time is called a
A) cross-section graph.
B) time-series graph.
C) scatter diagram.
D) Venn diagram.
E) None of the above answers is correct.
25) ________ shows the values of a variable for different groups in the population at a certain
point in time.
A) A time-series graph
B) The origin
C) A cross-section graph
D) A scatter plot
E) A trend-line graph
26) A cross-section graph
A) is divided into different sections.
B) shows values of an economic variable for different groups in a population at a point in time.
C) measures time on the x-axis and the variable in which we are interested on the y-axis.
D) Both answers A and C are correct.
E) Both answers B and C are correct.
27) You have data for the amount of rainfall in 50 cities for the month of June. The type of graph
to best display these data would be a
A) time-series graph.
B) multi-variable time series graph.
C) cross-section graph.
D) scatter diagram.
E) trend-line diagram.
28) You have data for sales of pizza for each of the 50 states in 2010. The type of graph to best
display these data would be a
A) cross-section graph.
B) time-series graph.
C) scatter diagram.
D) multi-variable time-series graph.
E) a trend-line diagram.
29) A graph shows the average SAT scores for males and females in 2010. The kind of graph
used to show these data would be a
A) scatter diagram.
B) time-series graph.
C) cross-section graph.
D) time-stationary graph.
E) trend figure.
30) Demonstrating how an economic variable changes from one year to the next is best
illustrated by a
A) scatter diagram.
B) time-series graph.
C) linear graph.
D) cross-section graph.
E) Venn diagram.
31) To show the values of an economic variable for different groups in a population at a point in
time, it is best to use a
A) scatter diagram.
B) time-series graph.
C) linear graph.
D) cross-section graph
E) trend-section diagram.
32) A graph that shows how the amount of advertising expenditure differs among various
industries can be shown
A) by a cross-section graph.
B) by a time-series graph.
C) as a trend.
D) by a scatter diagram.
E) by a trend-section graph.
33) A linear relationship
A) when graphed is a straight line.
B) when graphed is a line whose slope changes.
C) can be a positive or a negative relationship.
D) Both answers A and C are correct.
E) Both answers A and B are correct.
34) A linear relationship
A) graphs as a straight line.
B) graphs as a curve.
C) can be either positive or negative.
D) Both answers A and C are correct.
E) Both answers B and C are correct.
35) A positive relationship exists between two variables if
A) one variable has “positively” no effect on the other variable.
B) a decrease in one variable is associated with an increase in the other variable.
C) a decrease in one variable is associated with a decrease in the other variable.
D) an increase in one variable is associated with both a decrease and an increase in the other
variable.
E) None of the above answers is correct.
36) If two variables are positively related, then
A) one variable causes the other.
B) an increase in one variable is accompanied by a decrease in the other.
C) an increase in one variable is accompanied by an increase in the other.
D) they change together, but not necessarily in the same direction.
E) neither variable can be positively related to any other variable.
37) As a person increases his or her caloric intake, the person’s weight increases, ceteris paribus.
The relationship between the person’s caloric intake and the person’s weight is an example of
A) unrelated variables.
B) a positive relationship.
C) a negative relationship.
D) a single point on a graph.
E) a trended relationship.
38) If there is a positive relationship between two variables,
A) the graph of the relationship will be upward sloping.
B) the graph of the relationship will be downward sloping.
C) the slope of the line graphing the relationship will be negative.
D) Both answers A and C are correct.
E) Both answers B and C are correct.
39) If the change in y = 10 and the change in x = 3, there is
A) a positive relationship between y and x.
B) a negative relationship between y and x.
C) an independent relationship between y and x.
D) no relationship between y and x.
E) a +0.33 relationship between the two variables.
40) Whenever people’s incomes increase, they buy more guitars. Hence a scatter diagram shows
that the relationship between income and guitars purchased is
A) a positive relationship.
B) a linear relationship.
C) a negative relationship.
D) some sort of relationship, but whether it is positive or negative depends on whether income is
plotted on the vertical or horizontal axis.
E) a U-shaped relationship.
41) Which of the following statements is correct?
A) When a line slopes downwards moving to the right, the variable measured on the x-axis and
the variable measured on the y-axis are directly related.
B) When a line slopes upwards moving to the right, the variable measured on the x-axis and the
variable measured on the y-axis are directly related.
C) The higher the temperature, the more ice cream people consume. Thus the temperature and
ice cream consumption are inversely related.
D) If two variables are directly related, a graph of the two variables has a negative slope.
E) None of the above statements are correct.
42) If x increases whenever y decreases, then x and y are
A) not related.
B) positively related.
C) directly related.
D) negatively related.
E) related but whether positively or negatively related depends on whether the x variable or the y
variable is plotted on the vertical axis.
43) Whenever one variable increases, another variable decreases. The two variables are
A) definitely related through a third variable.
B) negatively related.
C) positively related.
D) unrelated to each other.
E) related but whether positively or negatively related depends on which variable is plotted on
the vertical axis.
44) If x increases and as a result y decreases, then x and y are
A) not related because the relationship is a causal one.
B) positively related.
C) negatively related.
D) directly related.
E) trend-line related.
45) “As the price of gasoline increases, fewer people buy cars that are gas guzzlers.” A graph
showing this relationship would
A) have a negative slope.
B) have a positive relationship.
C) have a direct relationship.
D) be a horizontal line.
E) be a vertical line.
46) As the number of days without rain increases, the amount of wheat grown per acre declines.
A graph showing this relationship shows
A) a horizontal line.
B) a vertical line.
C) a positive relationship.
D) a line with a positive slope.
E) None of the above answers is correct.
47) As the price of home heating oil rises, families buy less home heating oil. Hence a scatter
diagram with the price of home heating oil on the vertical axis and the quantity purchased on the
horizontal axis reveals a ________ relationship.
A) positive
B) linear
C) time-series
D) negative
E) cross-sectional
48) If the change in y = -4 and the change in x = 2, there is
A) an independent relationship between y and x.
B) a positive relationship between y and x.
C) a negative relationship between y and x.
D) no relationship between y and x.
E) a relationship between x and y but more information is needed to determine if it is a negative
or positive relationship.
49) An independent relationship between two variables is shown in a graph by
A) an upward-sloping line.
B) a horizontal or a vertical line.
C) a downward-sloping line.
D) a steeply sloped line.
E) any straight line curve.
50) If two variables are unrelated, their graph is
A) either a horizontal or a vertical line.
B) a downward-sloping line.
C) an upward-sloping line.
D) a curved line.
E) None of the above answers is correct because it is not possible to graph unrelated variables.
51) Consider a diagram in which the variable measured on the y-axis remains constant while the
variable measured on the x-axis increases. The graph of these two variables is a
A) vertical line.
B) horizontal line.
C) line that has positive slope.
D) line that has a negative slope.
E) non-existent because the two variables are not related.
52) A graph shows the price of a pound of cucumbers on the vertical axis and the quantity of
new cars sold by Honda on the horizontal axis. The price of a pound of cucumbers remains
constant as the quantity of new cars sold increases. The graph of these data is a
A) horizontal line.
B) vertical line.
C) curve with a maximum.
D) positively sloped line.
E) negatively sloped line.
53) Matt pays a $50 a month membership fee at Bruno’s Gym. He can exercise at the gym as
many times as he wishes. If the membership fee is measured along the vertical axis and the
number of times he exercises is measured along the horizontal axis, the graph between his
membership fee and the number of times he exercises will
A) be a horizontal line.
B) be positively sloped.
C) be negatively sloped.
D) be a vertical line.
E) start out positively sloped and then, as Matt loses interest, become negatively sloped.
54) In the above figure, as the y variable increases,
A) the x variable is constant.
B) the x variable increases.
C) the x variable decreases.
D) the x variable at first increases but then decreases.
E) the x variable probably changes but more information is needed to determine if it increases,
decreases, or stays the same.
55) In the above figure, a negative relationship between x and y is shown in Figure
A) A.
B) B.
C) C.
D) D.
E) B and Figure C.
56) In the above figure, no relationship between x and y is shown in Figure
A) A.
B) B.
C) C.
D) D.
E) A and Figure B.
57) In the diagram above, which figure(s) show(s) a direct relationship between the variables?
A) both B and C
B) both A and C
C) only A
D) only D
E) only B
58) In the diagram above, which figure(s) show(s) an inverse relationship between the variables?
A) both B and C
B) only B
C) both A and C
D) only D
E) only C
59) In the diagram above, which figure(s) show(s) no relationship between the variables?
A) both B and C
B) only B
C) both A and C
D) only D
E) both A and B
60) If a curve rises and then falls, it has a
A) maximum.
B) minimum.
C) linear relationship.
D) constant slope relationship.
E) slope that is negative and then positive.
61) As a shoe factory adds more workers, shoe production grows, reaches a maximum, and then
shrinks. In a diagram that has the number of workers on the horizontal axis and the number of
shoes on the vertical axis, the relationship between the number of workers and the number of
shoes starts as ________ and then, after the maximum point, is ________.
A) positive; negative
B) negative; positive
C) linear; negative
D) positive; linear
E) positive; nonexistent
62) As a curve approaches a maximum point, the slope will
A) be positive and then negative after the maximum point.
B) be negative and then positive after the maximum point.
C) remain constant on either side of the maximum point.
D) increase before and after the maximum point.
E) decrease before and after the maximum point.
63) In the figure above, the relationship between the x variable and the y variable
A) is positive.
B) is negative.
C) starts by being positive and then becomes negative.
D) starts by being negative and then becomes positive.
E) is non-existent because the two variables are unrelated.
64) If a curve falls and then rises, it
A) has a maximum.
B) has a minimum.
C) has a linear relationship.
D) has a constant slope relationship.
E) shows no relationship between the two variables.
65) Moving from left to right, a U-shaped curve starts with a
A) positive slope, reaches a maximum, then ends with a negative slope.
B) positive slope, reaches a minimum, then ends with a negative slope.
C) negative slope, reaches a maximum, then ends with a positive slope.
D) negative slope, reaches a minimum, then ends with a positive slope.
E) negative slope, reaches a minimum, then ends with a negative slope.
66) The minimum point of a U-shaped curve,
A) is a point where the variable is neither increasing nor decreasing.
B) has a slope equal to zero.
C) has the maximum slope possible.
D) Both answers A and B are correct.
E) Both answers A and C are correct.
67) An economist observed that as more computers are added to a factory, the costs of
production initially decline, reach a minimum, and then rise. In a diagram that has costs on the
vertical axis and the number of computers on the horizontal axis, the relationship always is
A) negative and then linear after the minimum point.
B) positive and then negative after the minimum point.
C) negative and then positive after the minimum point.
D) linear and then positive after the minimum point.
E) negative both before and after the minimum point.
68) If whenever one variable increases, another variable also increases, then these two variables
are ________ related.
A) positively
B) negatively
C) inversely
D) cross-sectionally
E) trend-line
69) The graph shows a
A) positive relationship that becomes steeper.
B) negative relationship that becomes steeper.
C) positive relationship that becomes less steep.
D) negative relationship that become less steep.
E) negative trend between the total cost of a cake and the output of cakes.
70) A graph of the relationship between two variables is a line that slopes down to the right.
These two variables are ________ related.
A) positively
B) directly
C) negatively
D) not
E) trend-line
71) A graph shows that the number of U.S. tourists visiting a Caribbean island increases as the
temperature in the northeastern United States falls. The graph shows
A) a positive relationship.
B) a direct relationship.
C) a negative relationship.
D) no relationship.
E) an invalid relationship.