Question Details

ECO 550 Week 5 Midterm
Question 1
Income tax payments are an example of ____.

			
 Question 2
The Saturn Corporation (once a division of GM) was permanently closed in 2009.  What went wrong with Saturn?

			
 Question 3
Recently, the American Medical Association changed its recommendations on the frequency of pap-smear exams for women.  The new frequency recommendation was designed to address the family histories of the patients.  The optimal frequency should be where the marginal benefit of an additional pap-test:

			
 Question 4
Which of the following will increase (V0), the shareholder wealth maximization model of the firm:
        V0∙(shares outstanding) = Σ∞t=1 (π t ) / (1+ke)t   + Real Option Value.

			
 Question 5
The closest example of a risk-free security is

			
 Question 6
The standard deviation is appropriate to compare the risk between two investments only if

			
 Question 7
The ____ is the ratio of ____ to the ____.

			
 Question 8
Based on risk-return tradeoffs observable in the financial marketplace, which of the following securities would you expect to offer higher expected returns than corporate bonds?
			
 Question 9
If demand were inelastic, then we should immediately:

			
 Question 10
An increase in each of the following factors would normally provide a subsequent increase in quantity demanded, except:

			
 Question 11
Those goods having a calculated income elasticity that is negative are called:

			
 Question 12
Which of the following would tend to make demand INELASTIC?

			
 Question 13
When using a multiplicative power function (Y = a X1b1 X2b2 X3b3) to represent an economic relationship, estimates of the parameters (a, and the b's) using linear regression analysis can be obtained by first applying a ____ transformation to convert the function to a linear relationship.

			
 Question 14
In which of the following econometric problems do we find Durbin-Watson statistic being far away from 2.0?

			
 Question 15
All of the following are reasons why an association relationship may not imply a causal relationship except:

			
 Question 16
Demand functions in the multiplicative form are most common for all of the following reasons except:

			
 Question 17
Consumer expenditure plans is an example of a forecasting method. Which of the general categories best described this example?

			
 Question 18
The use of quarterly data to develop the forecasting model Yt = a +bYt−1 is an example of which forecasting technique?

			
 Question 19
An example of a time series data set is one for which the:

months).
			
 Question 20
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:

			
 Question 21
Companies that reduce their margins on export products in the face of appreciation of their home currency may be motivated by a desire to

			
 Question 22
European Union labor costs exceed U.S. and British labor costs primarily because

			
 Question 23
	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?

			
 Question 24
In a recession, the trade balance often improves because

			
 Question 25
The isoquants for inputs that are perfect substitutes for one another consist of a series of:

			
 Question 26
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:

			
 Question 27
The marginal product is defined as:
			
 Question 28
The marginal rate of technical substitution may be defined as all of the following except:

			
 Question 29
For a short-run cost function which of the following statements is (are) not true?
			
 Question 30
If TC = 321 + 55Q - 5Q2, then average total cost at Q = 10 is:

			
 Question 31
____ are defined as costs which are incurred regardless of the alternative action chosen in a decision-making problem.

			
 Question 32
What method of inventory valuation should be used for economic decision-making problems?

			
BONUS

Which of the following statements concerning the long-run average cost curve of economic theory is true?


Question
Economies of scale exist whenever long-run average costs:

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

Question
The existence of diseconomies of scale (size) for the firm is hypothesized to result from:

Question
The flat-screen plasma TVs are selling extremely well.  The originators of this technology are earning higher profits.  What theory of profit best reflects the performance of the plasma screen makers?


To reduce Agency Problems, executive compensation should be designed to:
.
Question
The net present value of an investment represents

Question
A change in the level of an economic activity is desirable and should be undertaken as long as the marginal benefits exceed the ____.

Question
Marginal revenue (MR) is ____ when total revenue is maximized.


Question
           The factor(s) which cause(s) a movement along the demand curve include(s):

Question
A price elasticity (ED) of 1.50 indicates that for a ____ increase in price, quantity demanded will ____ by ____.

Question
           The Identification Problem in the development of a demand function is a result of:

Question
	       The estimated slope coefficient (b) of the regression equation (Ln Y = a + b Ln X) measures the ____ change in Y for a one ____ change in X.


Question
            The type of economic indicator that can best be used for business forecasting is the:

Question
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.)



Question
If the value of the U.S. dollar rises from  1.0 per dollar to  1.3 per dollar,

Question
Marginal factor cost is defined as the amount that an additional unit of the variable input adds to ____.

Question
         The primary purpose of the Cobb-Douglas power function is to:

Question 5
•	The approximate probability of a value occurring that is greater than one standard deviation from the mean is approximately (assuming a normal distribution)

		
Question
In regression analysis, the existence of a significant pattern in successive values of the error term constitutes:Answer
		
Question
One commonly used test in checking for the presence of autocorrelation when working with time series data is the ____.Answer
		
Question
An example of a time series data set is one for which the:Answer

Question 
		data is created from a random number generation program
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.
		
Question
Trading partners should specialize in producing goods in accordance with comparative advantage, then trade and diversify in consumption because
	
QUESTION
•	Trading partners should specialize in producing goods in accordance with comparative advantage, then trade and diversify in consumption because

Question 22
•	The purchasing power parity hypothesis implies that an increase in inflation in one country relative to another will over a long period of time

Question 23
•	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:


Question 24
•	Using demand and supply curves for the Japanese yen based on the $/Â¥ price for yen, an increase in US INFLATION RATES would

Question 25
•	Which of the following is never negative?

Question 26
•	Marginal revenue product is:

Question 27
•	The marginal rate of technical substitution may be defined as all of the following except:

Question 28
•	The combinations of inputs costing a constant C dollars is called:

Question 29
•	____ are defined as costs which are incurred regardless of the alternative action chosen in a decision-making problem.

Question 30
•	According to the theory of cost, specialization in the use of variable resources in the short-run results initially in:

Question 31
•	If TC = 321 + 55Q - 5Q2, then average total cost at Q = 10 is:

Question 32
•	Economies of Scope refers to situations where per unit costs are:

PART 2
Question 1
Which of the following will increase (V0), the shareholder wealth maximization model of the firm:
        V0∙(shares outstanding) = Σ∞t=1 (π t ) / (1+ke)t   + Real Option Value.


Question 2
To reduce Agency Problems, executive compensation should be designed to:

Question 3
Possible goals of Not-For-Profit (NFP) enterprises include all of the following EXCEPT:

Question 4
Income tax payments are an example of ____.


Question 5
The standard deviation is appropriate to compare the risk between two investments only if

Question 6
Generally, investors expect that projects with high expected net present values also will be projects with

Question 7
The net present value of an investment represents

Question 8
The ____ is the ratio of ____ to the ____.


Question 9
If demand were inelastic, then we should immediately:


Question 10
Producers' goods are:

Question 11
Iron ore is an example of a:

Question 12
Those goods having a calculated income elasticity that is negative are called:

Question 13
The standard deviation of the error terms in an estimated regression equation is known as:


Question 14
In regression analysis, the existence of a high degree of intercorrelation among some or all of the explanatory variables in the regression equation constitutes:

Question 15
The constant or intercept term in a statistical demand study represents the quantity demanded when all independent variables are equal to:

	

Question 16
The estimated slope coefficient (b) of the regression equation (Ln Y = a + b Ln X) measures the ____ change in Y for a one ____ change in X.

Question 17
For studying demand relationships for a proposed new product that no one has ever used before, what would be the best method to use?


Question 18

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.

Question 19
The type of economic indicator that can best be used for business forecasting is the:

Question 20
Which of the following barometric indicators would be the most helpful for forecasting future sales for an industry?

Question 21
European Union labor costs exceed U.S. and British labor costs primarily because


Question 22
The purchasing power parity hypothesis implies that an increase in inflation in one country relative to another will over a long period of time


Question 23
An appreciation of the U.S. dollar has what impact on Harley-Davidson (HD), a U.S. manufacturer of motorcycles?

Question 24
Companies that reduce their margins on export products in the face of appreciation of their home currency may be motivated by a desire to

Question 25

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

Question 26
Marginal factor cost is defined as the amount that an additional unit of the variable input adds to ____.

Question 27
The marginal product is defined as:


Question 28

The following is a Cobb-Douglas production function:  Q = 1.75K0.5∙L0.5.  What is correct here?

Question 29

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

Question 30

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

Question 31

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

Question 32
 If TC = 321 + 55Q - 5Q2, then average total cost at Q = 10 is:


Health Care Assignment Help, Health Care Homework help, Health Care Study Help, Health Care Course Help