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Foundations of Macroeconomics 8th Edition by Robin Bade Test bank

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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.
Answer:  C
Topic:  Positive relationship
Skill:  Level 1: Definition
Section:  Chapter 1 Appendix - Checkpoint 2
Status:  Old
AACSB:  Analytic skills

36) 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.
Answer:  B
Topic:  Positive relationship
Skill:  Level 2: Using definitions
Section:  Chapter 1 Appendix - Checkpoint 2
Status:  Old
AACSB:  Analytic skills

37) 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.
Answer:  A
Topic:  Positive relationship
Skill:  Level 2: Using definitions
Section:  Chapter 1 Appendix - Checkpoint 2
Status:  Old
AACSB:  Analytic skills
38) 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.
Answer:  A
Topic:  Positive relationship
Skill:  Level 2: Using definitions
Section:  Chapter 1 Appendix - Checkpoint 2
Status:  Old
AACSB:  Analytic skills

39) 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.
Answer:  A
Topic:  Positive relationship
Skill:  Level 2: Using definitions
Section:  Chapter 1 Appendix - Checkpoint 2
Status:  Old
AACSB:  Analytic skills

40) 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 is correct.
Answer:  B
Topic:  Positive and negative relationships
Skill:  Level 1: Definition
Section:  Chapter 1 Appendix - Checkpoint 2
Status:  Old
AACSB:  Analytic skills
41) 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.
Answer:  D
Topic:  Negative relationship
Skill:  Level 1: Definition
Section:  Chapter 1 Appendix - Checkpoint 2
Status:  Old
AACSB:  Analytic skills

42) 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.
Answer:  B
Topic:  Negative relationship
Skill:  Level 1: Definition
Section:  Chapter 1 Appendix - Checkpoint 2
Status:  Old
AACSB:  Analytic skills

43) If x increases and as a result y decreases, then x and y are
A) not related because the relationship is a causal one.

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