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Simplified trend models are generally appropriate for predicting the turning points 1. The type of economic indicator that can best be used for business forecasting is the: a. leading indicator b. coincident indicator c. lagging indicator d. current business inventory indicator e. optimism/pessimism indicator 2. Consumer expenditure plans is an example of a forecasting method. Which of the general categories best described ...

Other / Other 23 Apr 2016

Identify the reasons why the quantity demanded of a product increases 1. Demand is given by QD = 620 10•P and supply is given by QS = 100 + 3•P. What is the price and quantity when the market is in equilibrium? a. The price will be $30 and the quantity will be 132 units. b. The price will be $11 and the quantity will be 122 units. c. The price will be $40 and the quantity will be 220 units. d. The price will be ...

Other / Other 23 Apr 2016

The Accuweather Corporation manufactures barometers 1. The Accuweather Corporation manufactures barometers and thermometers for weather forecasters. In an attempt to forecast its future needs for mercury, Accuweather's chief economist estimated average monthly mercury needs as: N = 500 + 10X where N = monthly mercury needs (units) and X = time period in months (January 2008= 0). The following monthly seasonal adjustment fa ...

Other / Other 23 Apr 2016

A certain production process employs 1. A certain production process employs two inputs--labor (L) and raw materials (R). Output (Q) is a function of these two inputs and is given by the following relationship: Q = 6L2 R2.10L3 R3 Assume that raw materials (input R) are fixed at 10 units. (a) Determine the total product function (TPL) for input L. (b) Determine the marginal product function for inpu ...

Other / Other 23 Apr 2016

The British Automobile Company is introducing a brand new model 1. The British Automobile Company is introducing a brand new model called the "London Special." Using the latest forecasting techniques, BAC economists have developed the following demand function for the "London Special": QD = 1,200,000  40P What is the point price elasticity of demand at prices of (a) $8,000 and (b) $10,000? Economics Assignment ...

Other / Other 23 Apr 2016

When there is multi collinearity in an estimated regression 1. One shortcoming of the use of ____ in demand analysis is that the participants are generally aware that their actions are being observed and hence they may seek to act in a manner somewhat different than normal. a. market experiments b. consumer clinics c. statistical (econometric) methods d. a and b e. none of the above 2. The constant or intercept term in a sta ...

Other / Other 23 Apr 2016

The factor(s) which cause(s) a movement along the demand curve 1. Iron ore is an example of a: a. durable good b. producers' good c. nondurable good d. consumer good e. none of the above 2. If the cross price elasticity measured between items A and B is positive, the two products are referred to as: a. complements b. substitutes c. inelastic as compared to each other d. both b and c e. a, b, and c 3. When deman ...

Other / Other 23 Apr 2016

Which of the following statements about cost functions is true 1. What method of inventory valuation should be used for economic decision-making problems? a. book value b. original cost c. current replacement cost d. cost or market, whichever is lower e. historical cost 2. According to the theory of cost, specialization in the use of variable resources in the short-run results initially in: a. decreasing returns and declin ...

Other / Other 23 Apr 2016

Concerning the maximization of output subject to a cost constraint 1. In a relationship among total, average and marginal products, where TP is maximized: a. AP is maximized b. AP is equal to zero c. MP is maximized d. MP is equal to zero e. none of the above 2. Holding the total output constant, the rate at which one input X may be substituted for another input Y in a production process is: a. the slope of the isoquant cu ...

Other / Other 23 Apr 2016

Determine the estimated regression line 1. Phoenix Lumber Company uses the number of construction permits issued to help estimate demand (sales). The firm collected the following data on annual sales and number of construction permits issued in its market area: No. of Construction Sales Year Permits Issued (000) (1,000,000) 2003 6.50 10.30 2004 6.20 10.10 2005 6.60 10.50 2006 7.30 10.80 2007 7.80 11.20 2008 8.20 11.40 2009 8 ...

Other / Other 23 Apr 2016