LU 2 Understanding Economic Graphs

Question 1

A Variable

Answer 1

Any unit or factor that can change

Question 2

Ceteris Paribus

Answer 2

Only two variables being studied will change, the other variables will remain the same

Question 3

Axes

Answer 3

Horizontal (X) and Vertical (Y) lines in the graph

Question 4

Time-series graph

Answer 4

Measures time on the horizontal axis and any other variable which we want to relate to time on the vertical axes (Time is measured on one of the axes)

Question 5

GDP

Answer 5

Gross Domestic Product

Question 6

Typical patterns that are found in Economics

Answer 6

• Variables that move up or down together
• Variables that move in opposite directions
• Variables that are not related to each other in any way.

Question 7

Variables with a positive relationship

Answer 7

Two variables move together in the same direction

Question 8

Linear relationship

Answer 8

Relationship between variables is a straight line

Question 9

Non-linear relationship

Answer 9

Curved line on graph

Question 10

Calculate the value of the slope

Answer 10

Difference in values on the vertical axes/ Difference in values on the horizontal axis

Question 11

Variables with a negative relationship

Answer 11

Two variables that move in opposite directions (inverse relationship)