Recent Question

Hanna Corporation markets a compact microwave 1. Hanna Corporation markets a compact microwave oven. In 2010 they sold 23,000 units at $375 each. Per capita disposable income in 2010 was $6,750. Hanna economists have determined that the arc price elasticity for this microwave oven is 1.2. (a) In 2011 Hanna is planning to lower the price of the microwave oven to $325. Forecast sales volume for 2011 assuming that all other thing ...

Other / Other 23 Apr 2016

The demand for durable goods tends to be more price elastic 1. An increase in each of the following factors would normally provide a subsequent increase in quantity demanded, except: a. price of substitute goods b. level of competitor advertising c. consumer income level d. consumer desires for goods and services e. a and b 2. Producers' goods are: a. consumers' goods b. raw materials combined to produce consumer goods c. ...

Other / Other 23 Apr 2016

The net present value of an investment represents 1. A change in the level of an economic activity is desirable and should be undertaken as long as the marginal benefits exceed the ____. a. marginal returns b. total costs c. marginal costs d. average costs e. average benefits 2. The level of an economic activity should be increased to the point where the ____ is zero. a. marginal cost b. average cost c. net marginal cos ...

Other / Other 23 Apr 2016

Explain what effect each of these factors would have on the long-term trend exchange rate 1. Suppose nominal interest rates in the U.S. rise from 4.6% to 5% and decline in Britain from 6% to 5.5%, while U.S. consumer inflation remains unchanged at 1.9% and British inflation declines from 4% to 3%. In addition suppose, real growth in the U.S. is forecasted for next year at 4% and in Britain real growth is forecasted at 5%. Finally, suppose ...

Other / Other 23 Apr 2016

An appreciation of the U.S. dollar has what impact on Harley-Davidson 1.US and Canada can both grow wheat and can do mining. Use the following table to look for which country has a comparative advantage in mining. (HINT: Find the cost of mining in terms of wheat in each country.) Absolute Cost in US Absolute Cost in Canada Wheat $5 C$8 Mining $10 C$12 a. Canada has a comparative advantage in mining. b. The US has a com ...

Other / Other 23 Apr 2016

The variation in an economic time-series which is caused by major expansions 1. Time-series forecasting models: a. are useful whenever changes occur rapidly and wildly b. are more effective in making long-run forecasts than short-run forecasts c. are based solely on historical observations of the values of the variable being forecasted d. attempt to explain the underlying causal relationships which produce the observed outcome e. non ...

Other / Other 23 Apr 2016

Which of the following is likely that the best forecasting functional 1. Emma uses a linear model to forecast quarterly same-store sales at the localGardenCenter. The results of her multiple regression is: Sales = 2,800 + 200•T - 350•D whereT goes from 1 to 16 for each quarter of the year from the first quarter of 2006 (‘06I) through the fourth quarter of 2009 (‘09 IV). D is a dummy variable which is 1 if ...

Other / Other 23 Apr 2016

During the last few days the Superior Company has been running into problems 1. During the last few days the Superior Company has been running into problems with its computer system. The last run of the production cost schedule resulted in the incomplete listing shown below. From your knowledge of cost theory, fill in the blanks. Q TC TFC TVC ATC AFC AVC MC 0 40 _____ _____ x x x x 1 _____ _____ _____ 52 _____ _____ ___ ...

Other / Other 23 Apr 2016

A study of expenditures on food in cities 1. Using a sample of 100 consumers, a double-log regression model was used to estimate demand for gasoline. Standard errors of the coefficients appear in the parentheses below the coefficients. Ln Q = 2.45 -0.67 Ln P + . 45 Ln Y - .34 Ln Pcars (.20) (.10) (.25) Where Q is gallons demanded, P is price per gallon, Y is disposable income, and Pcars is a price index for cars. B ...

Other / Other 23 Apr 2016

The approximate probability of a value occurring 1. The standard deviation is appropriate to compare the risk between two investments only if a. the expected returns from the investments are approximately equal b. the investments have similar life spans c. objective estimates of each possible outcome is available d. the coefficient of variation is equal to 1.0 e. none of the above 2. The approximate probability of a value occ ...

Other / Other 23 Apr 2016