Show graphically the relationships that you would expect to find between (a) student IQs and grade point averages (GPAs); (b) the price of a product and the amount consumers will purchase; (c) the temperature and the number of people at the swimming pool. Which of these are direct relationships and which are inverse? What considerations might change the expected relationships?
315) Show graphically on the below graph the expected relationship between investment spending and interest rates. Put investment expenditures on the horizontal axis and the rate of interest on the vertical axis; connect the points and label the curve "Investment demand". Describe this relationship between the rate of interest and investment expenditures. Describe the slope of the investment curve.
316) 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. What would be the linear equation for the line if one set of points was (0, 12) and the other set was (12, 36)?
317) The value of the vertical intercept is $100 and the slope is 0.8 in a linear equation for consumption (measured on the vertical axis) and disposable income (measured on the horizontal axis). If disposable income is $1000, what is consumption? State the linear equation and show how you found the answer.
318) How do you determine the slope of a nonlinear curve? Will the slope be the same along the curve? Explain.
319) Using the below graph give the slopes of the lines tangent to the curve at points A, B, and C.
320) Rational individuals may make different choices because their information and circumstances differ.
⊚ true
⊚ false
⊚ false
321) Certain inherently desirable products such as education and health care should be produced so long as resources are available.
⊚ true
⊚ false
⊚ false
322) Marginal analysis means that decision-makers compare the extra benefits with the extra costs of a specific choice.
⊚ true
⊚ false
⊚ false
323) Choices entail marginal costs because resources are scarce.
⊚ true
⊚ false
⊚ false
324) If economic theories are solidly based on relevant facts, then there can be no question as to the character of appropriate economic policy.
⊚ true
⊚ false
⊚ false
325) The fact that economic generalizations are abstract renders them impractical and useless.
⊚ true