ECO 550 WEEK 5 MID TERM EXAM PART II

ECO 550 WEEK 5 MID TERM EXAM PART II
1 For studying demand relationships for a proposed new product that no
one has ever used before, what would be the best method to use?

2 If two alternative economic models are offered, other things equal, we
would

3 An example of a time series data set is one for which the:

4 The variation in an economic time-series which is caused by major
expansions or contractions usually of greater than a year in duration is
known as:

5 The use of quarterly data to develop the forecasting model Yt = a
+bYt−1 is an example of which forecasting technique?

6 Consumer expenditure plans is an example of a forecasting method.
Which of the general categories best described this example

7 In a recession, the trade balance often improves because

8 An increase in the exchange rate of the U.S. dollar relative to a trading
partner can result from

9 In Chinese coastal provinces, brick housing for a fast expanding middle
class is very comparable in size to housing in the U.S. for a family with
median income of $51,000 because


10  Purchasing power parity or PPP says the ratios composed of

11 Using demand and supply curves for the Japanese yen based on the $/Â¥
price for yen, an increase in US INFLATION RATES would

12 Companies that reduce their margins on export products in the face of
appreciation of their home currency may be motivated by a desire to

13 The optimal currency area involves a trade-off of reducing transaction
costs but the inability to use changes in exchange rates to help ailing
regions. If the US, Canada, and Mexico had one single currency (the
Peso-Dollar) we would tend to see all of the following EXCEPT:

14 In a relationship among total, average and marginal products, where TP is
maximized:

15 If the marginal product of labor is 100 and the price of labor is 10, while
the marginal product of capital is 200 and the price of capital is $30,
then what should the firm

16 The isoquants for inputs that are perfect substitutes for one another
consist of a series of


17 The combinations of inputs costing a constant C dollars is called

18 Given a Cobb-Douglas production function estimate of Q = 1.19L.72K.18
for a given industry, this industry would have

19 The marginal rate of technical substitution may be defined as all of the
following except

20 Economies of Scope refers to situations where per unit costs are

21 If TC = 321 + 55Q - 5Q2, then average total cost at Q = 10 is:

22 According to the theory of cost, specialization in the use of variable
resources in the short-run results initially in

23  What method of inventory valuation should be used for economic
decision-making problems

24 For a short-run cost function which of the following statements is (are) not true