A) 4
B) 1
C) 3
D) -3
E) 0
Answer: D
Topic: Slope
Skill: Level 3: Using models
Section: Chapter 1 Appendix - Checkpoint 3
Status: Old
AACSB: Analytic skills
113) What is the slope of the line in the graph?
A) +1/2
B) -1/2
C) + 2
D) -2
E) -3/4
Answer: A
Topic: Slope of a straight line
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix - Checkpoint 3
Status: Old
AACSB: Analytic skills
114) The slope of the curve at point B
A) is greater than the slope at point A.
B) is less than the slope at point A.
C) is equal to the slope at point A.
D) cannot be compared with the slope at point A.
E) can be compared with the slope at point A, but more information is needed to determine if the slope is greater than, less than, or equal to the slope at point A.
Answer: B
Topic: Slope
Skill: Level 3: Using models
Section: Chapter 1 Appendix - Checkpoint 3
Status: Old
AACSB: Analytic skills
115) The Latin term "ceteris paribus" means
A) "false unless proven true."
B) "other things remaining the same."
C) "after this, therefore because of this."
D) "what is true of the whole is not necessarily true of the parts."
E) "obviously true."
Answer: B
Topic: Ceteris paribus
Skill: Level 1: Definition
Section: Chapter 1 Appendix - Checkpoint 4
Status: Old
AACSB: Reflective thinking
116) Which of the following statements is the best example of the term ceteris paribus?
A) An economist holds other factors constant when he examines the relationship between tax rates and tax revenues.
B) More money should be spent on cleaning up the environment.
C) The government budget surplus was $200 billion in 2000 because the economy was growing.
D) An increase in the budget surplus after an increase in tax rates implies that tax rate increases cause budget surpluses.
E) When studying the effects of a budget deficit, an economist must take account of all the factors involved.
Answer: A
Topic: Ceteris paribus
Skill: Level 3: Using models
Section: Chapter 1 Appendix - Checkpoint 4
Status: Old
AACSB: Reflective thinking
117) To graph a relationship involving more than two variables, we use which assumption?
A) linear assumption
B) positive relationship assumption
C) marginal analysis
D) ceteris paribus
E) trend assumption
Answer: D
Topic: Ceteris paribus
Skill: Level 1: Definition
Section: Chapter 1 Appendix - Checkpoint 4
Status: Old
AACSB: Analytic skills
118) To graph a relationship among several variables, we hold all but ________ variable(s) constant and use the ________ assumption.
A) one; scarcity
B) two; ceteris paribus
C) three; scarcity
D) one; ceteris paribus
E) one; absence of trend
Answer: B
Topic: Relationships among more than two variables
Skill: Level 1: Definition
Section: Chapter 1 Appendix - Checkpoint 4
Status: Old
AACSB: Analytic skills
119) We are investigating the relationship among three variables. We have graphed two of them. Suppose that the variable that is not measured on the x-axis or the y-axis changes. Then, there is
A) a movement along the plotted curve.
B) a shift in the plotted curve.
C) no impact on the plotted curve because the variable is not measured on either of the axes.
D) an omitted variable.
E) a violation of the absence of trend assumption.
Answer: B
Topic: Relationships among more than two variables
Skill: Level 1: Definition
Section: Chapter 1 Appendix - Checkpoint 4
Status: Old
AACSB: Analytic skills
120) When analyzing graphically the relationship between more than two variables, which of the following must be used?
A) positive slope assumption
B) assumption of little change
C) ceteris paribus
D) negative slope assumption
E) the assumption that only relevant factors change