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Foundations of Macroeconomics 8th Edition by Robin Bade Test bank

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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.
Answer:  A
Topic:  Unrelated variables
Skill:  Level 3: Using models
Section:  Chapter 1 Appendix - Checkpoint 2
Status:  Old
AACSB:  Analytic skills

53) 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.
Answer:  A
Topic:  Unrelated variables
Skill:  Level 1: Definition
Section:  Chapter 1 Appendix - Checkpoint 2
Status:  Old
AACSB:  Analytic skills

54) 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.
Answer:  B
Topic:  Negative relationship
Skill:  Level 1: Definition
Section:  Chapter 1 Appendix - Checkpoint 2
Status:  Old
AACSB:  Analytic skills

55) 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.
Answer:  C
Topic:  Unrelated variables
Skill:  Level 1: Definition
Section:  Chapter 1 Appendix - Checkpoint 2
Status:  Old
AACSB:  Analytic skills

56) 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
Answer:  B
Topic:  Positive relationship
Skill:  Level 2: Using definitions
Section:  Chapter 1 Appendix - Checkpoint 2
Status:  Old
AACSB:  Analytic skills

57) 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
Answer:  B
Topic:  Negative relationship
Skill:  Level 2: Using definitions
Section:  Chapter 1 Appendix - Checkpoint 2
Status:  Old
AACSB:  Analytic skills
58) 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
Answer:  D
Topic:  Unrelated variables
Skill:  Level 2: Using definitions
Section:  Chapter 1 Appendix - Checkpoint 2
Status:  Old
AACSB:  Analytic skills

59) 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.
Answer:  A
Topic:  Maximum
Skill:  Level 1: Definition
Section:  Chapter 1 Appendix - Checkpoint 2
Status:  Old
AACSB:  Analytic skills

60) 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
Answer:  A
Topic:  Maximum
Skill:  Level 3: Using models
Section:  Chapter 1 Appendix - Checkpoint 2
Status:  Old
AACSB:  Analytic skills
61) 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.

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