Solved > 11) Household consumption depends on both income and:1962864 …

11) Household consumption depends on both income and interest rates. In the above figure

A) household consumption is held constant.

B) interest rates are held constant.

C) household income is held constant.

D) no variable is held constant.

12) In the above figure, if household consumption is positively related to household income, then an increase in household income will

A) shift the line rightward.

B) shift the line leftward.

C) make the line positively sloped.

D) cause a movement along the line.

13) 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) 1000 pounds of peanuts.

C) 2000 pounds of peanuts.

D) 4000 pounds of peanuts.

14) 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 is held constant.

B) price of a pound of peanuts is held constant.

C) quantity of peanuts that farmers supply is constant.

D) Both answers A and B are true.

15) 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.

16) In the above figure, x is

A) positively related to y and negatively related to z.

B) positively related to both y and z.

C) negatively related to y and positively related to z.

D) negatively related to both y and z.

17) In the figure above, ceteris paribus, an increase in x is associated with

A) an increase in y.

B) a decrease in y.

C) a decrease in z.

D) None of the above answers is correct.

18) In the figure above, an increase in z leads to a

A) movement up along one of the lines showing the relationship between x and y.

B) movement down along one of the lines showing the relationship between x and y.

C) rightward shift of the line showing the relationship between x and y.

D) leftward shift of the line showing the relationship between x and y.

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