Chapter 01 – Limits, Alternatives, and Choices (+ Appendix)
169. A nation’s consumption is strictly limited by its production possibilities, even with trade.
170. If two variables are directly related they will always graph as:
171. If an inverse relationship exists between two variables, then:
Chapter 01 – Limits, Alternatives, and Choices (+ Appendix)
172. The slope of a straight line is the ratio of the:
173. 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:
174. 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:
Chapter 01 – Limits, Alternatives, and Choices (+ Appendix)
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
175. Which of the sets show an inverse relationship between the independent and dependent
variable?
176. The slope of the line for data set 2 above is:
Chapter 01 – Limits, Alternatives, and Choices (+ Appendix)
177. The vertical intercept is 12 in which of the above data set:
178. The linear equation for data set 1 above is:
179. 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:
Chapter 01 – Limits, Alternatives, and Choices (+ Appendix)
180. A relationship illustrated by an upsloping graph means that an:
181. Which of the following is correct?
182. In a graph of the relationship between income and consumption, economists generally
consider:
Chapter 01 – Limits, Alternatives, and Choices (+ Appendix)
183. When illustrating graphically the relationship between the price of a stock and the
quantity of a stock purchased, it is usually the case that:
184. On a graph of two variables, X and Y, ceteris paribus means that:
185. When variables A and B are negatively correlated, it implies that:
Chapter 01 – Limits, Alternatives, and Choices (+ Appendix)
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186. Which of the following indicates a negative relationship between x and y?
187. Which of the following suggests a positive relationship between x and y?
Chapter 01 – Limits, Alternatives, and Choices (+ Appendix)
188. Variables X and Y in the above table are:
189. Variables X and Z in the above table are:
Chapter 01 – Limits, Alternatives, and Choices (+ Appendix)
190. Refer to the table below that shows the quantities of corn consumers will purchase at
various prices (hypothetical data).
From an economist’s perspective, which line in the above graph best represents the data in the
table?
191. Refer to the above graph. Which line shows a direct relationship between price and
quantity?
Chapter 01 – Limits, Alternatives, and Choices (+ Appendix)
192. Refer to the above graph. From the economist’s perspective, what is the independent
variable and what is the dependent variable?
193. In line (2) on the above graph, the variables x and y are:
Chapter 01 – Limits, Alternatives, and Choices (+ Appendix)
194. The slope of line (2) on the above graph is:
195. The linear equation for line (1) on the above graph is:
196. The vertical intercept of line (2) on the above graph is:
Chapter 01 – Limits, Alternatives, and Choices (+ Appendix)
197. If a linear relation is described by the equation was C = 35 – 5D, then the slope of the
line would be:
198. 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:
199. 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:
Chapter 01 – Limits, Alternatives, and Choices (+ Appendix)
200. Refer to the above graph. The slope of the line tangent to the curve at point A is:
201. Refer to the above graph. The slope of the line tangent to the curve at point B is:
Chapter 01 – Limits, Alternatives, and Choices (+ Appendix)
202. Refer to the above graph. The slope of the line tangent to the curve at point C is:
203. If you knew that the intercept for a straight line was 12, and that if the value of the
independent variable was 3 the value of the dependent variable would be 18, then the slope of
the line would be:
204. In a linear equation relating income and consumption, you know that the intercept is
$1,000 and the slope of the line is .4. If income is $20,000, then consumption is:
Chapter 01 – Limits, Alternatives, and Choices (+ Appendix)
205. If two sets of data are inversely related, they will appear on a graph as an upsloping line.
206. If A is the dependent variable and B is the independent variable, then a change in A
results in a change in B.
207. Economists always place the dependent variable on the vertical axis and the independent
variable on the horizontal axis in all cases.
208. An assumption is usually made in a two-variable graph that, aside from the two variables
under study, the influence of all other variables or factors is assumed to be constant.
Chapter 01 – Limits, Alternatives, and Choices (+ Appendix)
209. The slope of a graph measures the rate of change in one variable as the other variable
changes.
210. The slope of a graph relating two variables is -5. This indicates that as one variable
decreases, the other variable also decreases.
211. If a linear equation was S = 15 – 5T, the vertical intercept is 15.
212. If the slope at one point on a nonlinear curve is zero, a straight line tangent to the curve
at that point would be vertical.