The type of economic indicator that can best be used for business forecasting is the:
Answer
leading indicator
coincident indicator
lagging indicator
current business inventory indicator
optimism/pessimism indicator
For studying demand relationships for a proposed new product that no one has ever used before, what would be the best method to use?
Answer
ordinary least squares regression on historical data
market experiments, where the price is set differently in two markets
consumer surveys, where potential customers hear about the product and are asked their opinions
double log functional form regression model
The constant or intercept term in a statistical demand study represents the quantity demanded when all independent variables are equal to:
Answer 1.0
their minimum values
their average values
0.0
The standard deviation of the error terms in an estimated regression equation is known as:
Answer
coefficient of determination
correlation coefficient
Durbin-Watson statistic
standard error of the estimate
Those goods having a calculated income elasticity that is negative are called:
Answer
producers' goods
durable goods
inferior goods
nondurable goods
Iron ore is an example of a:
Answer
durable good
producers' good
nondurable good
consumer good
Producers' goods are:
Answer
consumers' goods
raw materials combined to produce consumer goods
durable goods used by consumers
always more expensive when used by corporation
If demand were inelastic, then we should immediately:
Answer
cut the price.
keep the price where it is.
go to the Nobel Prize Committee to show we were the first to find an upward sloping demand curve.
raise the price.
The ____ is the ratio of ____ to the ____.
Answer
standard deviation; covariance; expected value
coefficient of variation; expected value; standard deviation
correlation coefficient; standard deviation; expected value
coefficient of variation; standard deviation; expected value
The net present value of an investment represents
Answer
an index of the desirability of the investment
the expected contribution of that investment to the goal of shareholder wealth maximization
the rate of return expected from the investment
the rate of return on equity