Graphs, variables, and economic models

What is a causal relationship?

Which of the following economic variables is an example of a slope of a curve?

1. 1. Demand curve

   2. Price elasticity of demand

   3. Production possibilities frontier

   4. Interest rate

Which of the following examples is not usually a dependent variable of the latter?

1. 1. Quantity demanded on price of a good

   2. Quantity supplied on price of a good

   3. Real GDP on interest rate 

   4. Demand for a good on labor demand

      1.  

What is an independent variable?

What is an independent variable?

What is a dependent variable?

What is the slope of a curve?

When graphed, the curve of a function with a positive relationship is ________

1. Upward-sloping

2. Downward-sloping

3. Vertical

4. Horizontal

What is a two-variable graph in economics?

What does a positive or direct relationship mean in economics?

Which of the following exhibits a positive relationship?

1. 1. Inflation increases as real GDP increases

   2. Demand for a good falls when tax increases

   3. Demand for a good falls when the price of a substitute good falls

   4. Demand for a good falls when the price of that good increases

Which of the following exhibits a negative relationship?

1. 1. Demand increases as income increases

   2. Inflation rate increases as demand increases

   3. Unemployment rate falls as inflation rate rises

   4. Demand for a good falls when income falls

When graphed, the curve of a function with a negative relationship is ________

1. 1. Upward-sloping

   2. Downward-sloping

   3. Vertical

   4. Horizontal

What does a negative or inverse relationship mean in economics?

Which of the following exhibits a negative relationship?

1. 1. Demand for a good falls when the price of a substitute good falls

   2. Demand for a good falls when the price of that good increases

   3. Demand for a good increases when income increases

   4. Demand for a good falls when income falls