F-test measures the statistical significance

Question

Question 1. If a company faces a price-elastic demand curve, it can increase the revenue by decreasing the price.

• True
• False

Question 2. F-test measures the statistical significance of each explanatory variable.

• True
• False

Question 3. A lawyer whose annual income used to be $150,000 quit the job and opened a restaurant. The total cost of operating the restaurant business is $100,000, and the annual revenue is $250,000. What is the lawyer's economic cost of running the restaurant business?

• $100,000
• $150,000
• $250,000
• $300,000
• $50,000

Question 4. Total revenue function is

TR = -Q(Q-10)
and total cost function is
TC = 2Q.

What is the profit-maximizing Q?

• 2
• 4
• 6
• 10
• 12

Question 5. What was NOT the effect of the "voluntary export restraint" on Japanese cars in 1981?

• Japan started to export high-end automobiles to U.S.
• Domestic car prices jumped up.
• U.S. consumers had to pay more to purchase cars.
• Japanese auto manufacturers suffered a significant decrease in revenue.
• US car auto manufacturers enjoyed higher profits.

Question 6. Click demand data and using the data, estimate the following regression equation:
P = 14254 - (   ) Q
Note: Be careful. The equation shows that the independent variable is Q and the dependent variable is P.
Note: Do not round the estimate. Just write the whole number. Be careful with the sign.

Question 7. (     ) method is a popular method of qualitative forecasting. Developed at the Rand Corporation in the 1950s, it is utilized predominantly in predicting technological trends and changes. It uses a panel of experts and unlike the jury of executive opinion, the participants do not meet ot discuss and agree on a forecast.

Question 8. 

Month	Sales	3-Month Moving Average of Sales
Jan	843
Feb	939
Mar	1236
Apr	876	1006
May		(     )

Note: Do not round the number. Write the whole number.

Question 9. What is time-series data. Give an example. What is cross-sectional data. Give an example.

Question 10. What is the key difference in assumption between a short-run production function and a long-run production function?

Question 11. Diminishing returns are short-run phenomena. Define the law of diminishing returns. In a well-defined cubic production function, in which stage does it kick in?

Question 12. Estimation of Cobb-Douglas production function.

The following link provides the data of a soft drink bottling production function:
soft drink data
The initial data set was transformed to log data. Estimate the following equation:
log (TP) = log a + b log (L) + c log (K)
Estimate "log a", "b", and "c".

[Hint: Since you have two independent variables, i.e., log(L) and log(K), you have to set the two data columns as one block for the X range.]