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 The forecasting technique which attempts to forecast short-run changes and makes use of economic indicators known as leading, coincident or lagging indicators is known as:  

3  Smoothing techniques are a form of ____ techniques which assume that there is an underlying pattern to be found in the historical values of a variable that is being forecast.  

4 Time-series forecasting models:  

5 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:

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

7 In an open economy with few capital restrictions and substantial import-export trade, a rise in interest rates and a decline in the producer price index of inflation will: 

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

9 If Ben Bernanke, Chair of the Federal Reserve Board, begins to tighten monetary policy by raising US interest rates next year, what is the likely impact on the value of the dollar?  

10 Purchasing power parity or PPP says the ratios composed of:  

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

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

13  If the British pound (₤) appreciates by 10% against the dollar:  

14  The marginal product is defined as:  

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

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

17 In a production process, an excessive amount of the variable input relative to the fixed input is being used to produce the desired output. This statement is true for: 

 18  Which of the following is never negative? 

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

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

21  The cost function is: 

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

23  Economies of Scope refers to situations where per unit costs are:

24  ____ are defined as costs which are incurred regardless of the alternative action chosen in a decision-making problem.  

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