ECO550 WEEK 5 MID TERM PART 1 & 2 LATEST 2017 (PERFECT ANSWER)

Question

Question 1

4 out of 4 points

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

Selected Answer:

Correct Answer:

Question 2

4 out of 4 points

The moral hazard in team production arises from

Selected Answer:

Correct Answer:

Question 3

4 out of 4 points

Economic profit is defined as the difference between revenue and ____.

Selected Answer:

Correct Answer:

Question 4

4 out of 4 points

The form of economics most relevant to managerial decision-making within the firm is:

Selected Answer:

Correct Answer:

Question 5

4 out of 4 points

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

Selected Answer:

Correct Answer:

Question 6

4 out of 4 points

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:

Selected Answer:

Correct Answer:

Question 7

0 out of 4 points

The primary difference(s) between the standard deviation and the coefficient of variation as measures of risk are:

Selected Answer:

Correct Answer:

Question 8

4 out of 4 points

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

Selected Answer:

Correct Answer:

Question 9

4 out of 4 points

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

Selected Answer:

Correct Answer:

Question 10

4 out of 4 points

An closest example of a risk-free security is

Selected Answer:

Correct Answer:

Question 11

4 out of 4 points

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?

Selected Answer:

Correct Answer:

Question 12

4 out of 4 points

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

Selected Answer:

Correct Answer:

Question 13

4 out of 4 points

An income elasticity (Ey) of 2.0 indicates that for a ____ increase in income, ____ will increase by ____.

Selected Answer:

Correct Answer:

Question 14

4 out of 4 points

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

Selected Answer:

Correct Answer:

Question 15

4 out of 4 points

Auto dealers slash prices at the end of the model year in response to deficient demand/excess inventory but restaurants facing the same problem slash production because

Selected Answer:

Correct Answer:

Question 16

4 out of 4 points

Suppose we estimate that the demand elasticity for fine leather jackets is .7 at their current prices. Then we know that:

Selected Answer:

Correct Answer:

Question 17

4 out of 4 points

Which of the following would tend to make demand INELASTIC?

Selected Answer:

Correct Answer:

Question 18

4 out of 4 points

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

Selected Answer:

Correct Answer:

Question 19

4 out of 4 points

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

Selected Answer:

Correct Answer:

Question 20

4 out of 4 points

In testing whether each individual independent variables (Xs) in a multiple regression equation is statistically significant in explaining the dependent variable (Y), one uses the:

Selected Answer:

Correct Answer:

Question 21

0 out of 4 points

When two or more "independent" variables are highly correlated, then we have:

Selected Answer:

Correct Answer:

Question 22

4 out of 4 points

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.

Selected Answer:

Correct Answer:

Question 23

4 out of 4 points

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

Selected Answer:

Correct Answer:

Question 24

4 out of 4 points

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.

Selected Answer:

Correct Answer:

Question 25

0 out of 4 points

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

Selected Answer:

Correct Answer:

PART II

Question 1

4 out of 4 points

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:

Selected Answer:

Correct Answer:

Question 2

4 out of 4 points

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

Selected Answer:

Correct Answer:

Question 3

4 out of 4 points

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

Selected Answer:

Correct Answer:

Question 4

4 out of 4 points

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

Selected Answer:

Correct Answer:

Question 5

4 out of 4 points

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.

Selected Answer:

Correct Answer:

Question 6

4 out of 4 points

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:

Selected Answer:

Correct Answer:

Question 7

4 out of 4 points

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?

Selected Answer:

Correct Answer:

Question 8

4 out of 4 points

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

Selected Answer:

Correct Answer:

Question 9

4 out of 4 points

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

Selected Answer:

Correct Answer:

Question 10

4 out of 4 points

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

Selected Answer:

Correct Answer:

Question 11

4 out of 4 points

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

Selected Answer:

Correct Answer:

Question 12

4 out of 4 points

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

Selected Answer:

Correct Answer:

Question 13

4 out of 4 points

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

Selected Answer:

Correct Answer:

Question 14

4 out of 4 points

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?

Selected Answer:

Correct Answer:

Question 15

4 out of 4 points

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

Selected Answer:

Correct Answer:

Question 16

4 out of 4 points

Given a Cobb-Douglas production function estimate of Q = 1.19L.72K.18 for a given industry, this industry would have:

Selected Answer:

Correct Answer:

Question 17

0 out of 4 points

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

Selected Answer:

Correct Answer:

Question 18

4 out of 4 points

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:

Selected Answer:

Correct Answer:

Question 19

4 out of 4 points

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

Selected Answer:

Correct Answer:

Question 20

4 out of 4 points

The cost function is:

Selected Answer:

Correct Answer:

Question 21

4 out of 4 points

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

Selected Answer:

Correct Answer:

Question 22

4 out of 4 points

Economies of scale exist whenever long-run average costs:

Selected Answer:

Correct Answer:

Question 23

4 out of 4 points

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

Selected Answer:

Correct Answer:

Question 24

4 out of 4 points

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

Selected Answer:

Correct Answer:

Question 25                       

4 out of 4 points

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

Selected Answer:

Correct Answer: