Answer: C
Topic: Ceteris paribus
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix - Checkpoint 4
Status: Old
AACSB: Analytic skills
121) Ceteris paribus when graphing a relationship refers to
A) letting all the variables change at once.
B) changing the origin of the graph.
C) holding constant all but two variables.
D) rescaling the coordinates.
E) swapping the axes so that the x-axis is the vertical axis and the y-axis is the horizontal axis.
Answer: C
Topic: Ceteris paribus
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix - Checkpoint 4
Status: Old
AACSB: Analytic skills
122) When two variables in a graph are related to a third, changing the third causes
A) a movement along the curve.
B) a shift of the curve.
C) no change in the curve because the third variable isn't on the axes.
D) either a shift or a movement in the curve but more information is needed to determine which occurs.
E) None of the above answers is correct.
Answer: B
Topic: Relationships among more than two variables
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix - Checkpoint 4
Status: Old
AACSB: Analytic skills
123) On a graph showing the relationship between x and y, the ceteris paribus condition implies that
A) no other variables are related to x and y.
B) the value of x is held constant.
C) the value of y is held constant.
D) other variables not shown are held constant.
E) the value of x and the value of y are held constant.
Answer: D
Topic: Ceteris paribus
Skill: Level 2: Using definitions
Section: Chapter 1 Appendix - Checkpoint 4
Status: Old
AACSB: Analytic skills
124) Three variables are related and two of them are plotted in a figure. If the variable that is not measured on either the x-axis or the y-axis changes, then there is
A) a movement along the drawn curve.
B) a shift in the curve.
C) no impact on the curve because the variable is not measured on either of the axes.
D) either a shift in the curve or a movement along the curve, but more information is needed to determine which.
E) None of the above answers is correct.
Answer: B
Topic: Changes in third variable
Skill: Level 1: Definition
Section: Chapter 1 Appendix - Checkpoint 4
Status: Old
AACSB: Analytic skills
125) The above figure shows how many pounds of peanuts farmers are willing to sell at different prices per pound of peanuts. If the price of a pound of peanuts is $1 and the price of a pound of pecans is $2, peanut farmers are willing to sell
A) no peanuts.
B) 1,000 pounds of peanuts.
C) 2,000 pounds of peanuts.
D) 4,000 pounds of peanuts.
E) more than 4,000 pounds of peanuts.
Answer: A
Topic: Relationships among more than two variables
Skill: Level 3: Using models
Section: Chapter 1 Appendix - Checkpoint 4
Status: Old
AACSB: Analytic skills
126) In the above figure, while drawing the line showing the relationship between the price of a pound of peanuts and the quantity sold, the
A) price of a pound of pecans does not change.
B) price of a pound of peanuts does not change.
C) the quantity of peanuts that farmers supply does not change.
D) Both answers A and B are correct.
E) Both answers B and C are correct.
Answer: A
Topic: Ceteris paribus
Skill: Level 3: Using models
Section: Chapter 1 Appendix - Checkpoint 4
Status: Old
AACSB: Analytic skills
127) In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases,
A) the curve will shift rightward.
B) the curve will shift leftward.
C) there is a movement along the curve.
D) the curve will be unaffected.
E) None of the above answers is correct because the graph assumes that the price of pecans does not change.
Answer: B
Topic: Relationships among more than two variables
Skill: Level 3: Using models
Section: Chapter 1 Appendix - Checkpoint 4
Status: Old
AACSB: Analytic skills
128) To graph a relationship that involves more than two variables, we use
A) a positive relationship.