Survey of Economics, 11th Edition Irvin B. Tucker (Solution manual)
Purpose and Perspective of the Chapter
The purpose of the Appendix to Chapter 01 is to examine how economic models and principles can be expressed graphically. In economics, graphs are used as visual aids to illustrate relationships between economic variables. If a relationship exists between two variables, then the relationship can be either direct (also known as a positive relationship) or inverse (also known as a negative relationship).
A direct relationship between two variables means that as one variable increases, this causes the other variable to also increase in value, and vice versa. A direct relationship is illustrated graphically as an upward sloping, or positively sloped line or curve.
An inverse relationship between two variables means that as one variable increases, this causes the other variable to decrease in value, and vice versa. An inverse relationship is illustrated graphically as a downward sloping, or negatively sloped line or curve.
An independent relationship means there is no relationship between two variables. When one variable changes, the other remains unchanged.
A shift in a curve (or line) occurs when the ceteris paribus assumption is relaxed and a third variable, not on either axis of the graph, is allowed to change.
Cengage Supplements
The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.
• PowerPoint Slides
• Test Bank
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Key Terms
Direct relationship: A positive association between two variables. When one variable increases, the other variable increases, and when one variable decreases, the other variable decreases.
Independent relationship: A zero association between two variables. When one variable changes, the other variable remains unchanged.
Inverse relationship: A negative association between two variables. When one variable increases, the other variable decreases, and vice versa.
Slope: The ratio of the change in the variable on the vertical axis (the rise or fall) to the change in the variable on the horizontal axis (the run).
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What’s New in This Chapter
The following elements are improvements in this chapter from the previous edition:
• The “Conclusion” statements of the previous edition have been replaced with “Take Note” statements. These Take Note statements have been carefully designed and updated to highlight key concepts and are strategically placed within the appendix to this chapter to enhance pedagogy. Students will be able to use these to remember key points when reviewing the appendix to this chapter and studying for quizzes and tests. A summary of these Take Note statements is provided at the end of the Appendix to Chapter 01.
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Chapter Outline
1A-1 A Direct Relationship
Exhibit A-1 “A Direct Relationship between Variables”
1A-2 An Inverse Relationship
Exhibit A-2 “An Inverse Relationship between Variables”
1A-3 The Slope of a Straight Line
Exhibit A-3 “An Independent Relationship between Variables”
1A-4 A Three-Variable Relationship in One Graph
Exhibit A-4 “Changes in Price, Quantity, and Income in Two Dimensions”
1A-5 A Helpful Study Hint for Using Graphs
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Discussion Questions
You can assign these questions several ways: in a discussion forum in your LMS; as wholeclass discussions in person; or as a partner or group activity in class.
1. What is the relationship between the annual sale of umbrellas and the annual amount of rainfall received in inches? How would this relationship be graphed?
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ANSWER: Direct relationship. The line or curve slopes upward (positive slope). The variable “annual sale of umbrellas” would be placed on the vertical axis (or “Y” axis) because it is the dependent variable, while the variable “annual amount of rainfall received in inches” would be placed on the horizontal (or “X” axis) because it is the independent variable.
2. What is the relationship between a student's grade point average and the number of hours spent studying per week? How would this relationship be graphed?
ANSWER: Direct relationship. The line or curve slopes upward (positive slope). The variable “grade point average” would be placed on the vertical axis (or “Y” axis) because it is the dependent variable while the variable “hours spent studying per week” would be placed on the horizontal (or “X” axis) because it is the independent variable.
3. What is the relationship between tuition and student enrollment at a university? How would this relationship be graphed?
ANSWER: Inverse relationship. The line or curve slopes downward (negative slope). The variable “student enrollment” would be placed on the vertical axis (or “Y” axis) because it is the dependent variable, while the variable "tuition" would be placed on the horizontal (or “X” axis) because it is the independent variable.
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Additional Activities and Assignments
I. Answers to even-numbered end-of-chapter Study Questions and Problems:
2. (a) There is an inverse relationship between the price per hamburger and the quantity consumers will purchase at each alternative price.
(b) The numerical table is:
(c) Most students will prefer the graphical model because of its clarity. See Figure 1A-1 below.
Figure 1A-1
II. “Analyze the Issue.” Here are some questions and suggested answers for further analysis associated with the “A Closer Look” boxed features within this Chapter: There are no “A Closer Look” boxed sections within the Appendix to Chapter 01.
III. CHAPTER 01 APPENDIX SUMMARY QUIZ. These are quiz questions not found in the textbook or in the Test Bank:
1. A direct relationship exists when:
a. there is no association between two variables.
b. one variable increases and there is no change in the other variable.
c. one variable increases and the other variable increases.
d. one variable increases and the other variable decreases.
2. An inverse relationship exists when:
a. there is no association between two variables.
b. one variable increases and there is no change in the other variable.
c. one variable increases and the other variable increases.
d. one variable increases and the other variable decreases.
3. A direct relationship is expressed graphically as a:
a. positively sloped line or curve.
b. negatively sloped line or curve.
c. horizontal line.
d. vertical line
4. Which of the following statements is correct?
a. Slope is the ratio of the vertical change (the rise or fall) to the horizontal change (the run).
b. A direct relationship is one in which two variables change in the same direction.
c. An inverse relationship is one in which two variables change in opposite directions.
d. An independent relationship is one in which two variables are unrelated.
e. All of the above.
ANSWERS TO APPENDIX TO CHAPTER 01 SUMMARY QUIZ
1. c
2. d
3. a
4. e
IV. CLASSROOM GAMES
Approximately 170 noncomputerized economic games (experiments) for use in the classroom are available for free at http://www.marietta.edu/~delemeeg/games/. The following games are recommended to help teach some of the concepts in this chapter:
There are no recommended games for this Appendix to Chapter 01. [return to top]
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Appendix
Generic Rubrics
Providing students with rubrics helps them understand expectations and components of assignments. Rubrics help students become more aware of their learning process and progress, and they improve students’ work through timely and detailed feedback.
Customize these rubric templates as you wish. The writing rubric indicates 40 points and the discussion rubric indicates 30 points.
The assignment clearly and comprehensively addresses all questions in the assignment.
15 points
The assignment presents ideas in a clear manner and with strong organizational structure. The assignment includes an appropriate introduction, content, and conclusion.
Coverage of facts, arguments, and conclusions are logically related and consistent.
10 points
Research
Research
Grammar and Spelling
The assignment is based upon appropriate and adequate academic literature, including peerreviewed journals and other scholarly work.
5 points
The assignment follows the required citation guidelines.
5 points
The assignment has two or fewer grammatical and spelling errors.
5 points
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The assignment partially addresses some or all questions in the assignment.
8 points
The assignment presents ideas in a mostly clear manner and with a mostly strong organizational structure. The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are mostly logically related and consistent.
7 points
The assignment is based upon adequate academic literature but does not include peerreviewed journals and other scholarly work.
3 points
The assignment follows some of the required citation guidelines.
3 points
The assignment has three to five grammatical and spelling errors.
3 points
The assignment does not address the questions in the assignment.
0 points
The assignment does not present ideas in a clear manner and with strong organizational structure. The assignment includes an introduction, content, and conclusion, but coverage of facts, arguments, and conclusions are not logically related and consistent.
0 points
The assignment is not based upon appropriate and adequate academic literature and does not include peer-reviewed journals and other scholarly work.
0 points
The assignment does not follow the required citation guidelines.
