Questions
Question 1
The moral hazard in team production arises from
Question 2
Possible goals of Not-For-Profit (NFP) enterprises include all of the following EXCEPT:
Question 3
Income tax payments are an example of ____.
Question 4
In the shareholder wealth maximization model, the value of a firm's stock is equal to the present value of all expected future ____ discounted at the stockholders' required rate of return.
Question 5
The form of economics most relevant to managerial decision-making within the firm is:
Question 6
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?
Question 7
The level of an economic activity should be increased to the point where the ____ is zero.
Question 8
A change in the level of an economic activity is desirable and should be undertaken as long as the marginal benefits exceed the ____.
Question 9
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 10
The primary difference(s) between the standard deviation and the coefficient of variation as measures of risk are:
Question 11
Generally, investors expect that projects with high expected net present values also will be projects with
Question 12
An closest example of a risk-free security is
Question 13
Songwriters and composers press music companies to lower the price for music downloads because
Question 14
A price elasticity (ED) of -1.50 indicates that for a ____ increase in price, quantity demanded will ____ by ____.
Question 15
Suppose we estimate that the demand elasticity for fine leather jackets is .7 at their current prices. Then we know that:
Question 16
Producers' goods are:
Question 17
The factor(s) which cause(s) a movement along the demand curve include(s):
Question 18
An increase in each of the following factors would normally provide a subsequent increase in quantity demanded, except:
Question 19
Marginal revenue (MR) is ____ when total revenue is maximized.
Question 20
Even though insignificant explanatory variables can raise the adjusted R2 of a demand function, one should not interpret their effects on the regression when
Question 21
The constant or intercept term in a statistical demand study represents the quantity demanded when all independent variables are equal to:
Question 22
In regression analysis, the existence of a significant pattern in successive values of the error term constitutes:
Question 23
Demand functions in the multiplicative form are most common for all of the following reasons except:
Question 24
The standard deviation of the error terms in an estimated regression equation is known as:
Question 25
In which of the following econometric problems do we find Durbin-Watson statistic being far away from 2.0?
Part 2
Question 1
Which of the following barometric indicators would be the most helpful for forecasting future sales for an industry?
Question 2
The type of economic indicator that can best be used for business forecasting is the:
Question 3
If two alternative economic models are offered, other things equal, we would
Question 4
Time-series forecasting models:
Question 5
The use of quarterly data to develop the forecasting model Yt = a +bYt-1 is an example of which forecasting technique?
Question 6
Consumer expenditure plans is an example of a forecasting method. Which of the general categories best described this example?
Question 7
In a recession, the trade balance often improves because
Question 8
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 9
Using demand and supply curves for the Japanese yen based on the $/¥ price for yen, an increase in US INFLATION RATES would
Question 10
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 11
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
Question 12
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
Question 13
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 14
Given a Cobb-Douglas production function estimate of Q = 1.19L.72K.18 for a given industry, this industry would have:
Question 15
The isoquants for inputs that are perfect complements for one another consist of a series of:
Question 16
In a relationship among total, average and marginal products, where TP is maximized:
Question 17
Which of the following is never negative?
Question 18
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?
Question 19
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 20
The existence of diseconomies of scale (size) for the firm is hypothesized to result from:
Question 21
For a short-run cost function which of the following statements is (are) not true?
Question 22
____ are defined as costs which are incurred regardless of the alternative action chosen in a decision-making problem.
Question 23
What method of inventory valuation should be used for economic decision-making problems?
Question 24
If TC = 321 + 55Q - 5Q2, then average total cost at Q = 10 is:
Question 25
Economies of Scope refers to situations where per unit costs are