ECO550 WEEK 5 MID TERM PART 1 2017 (ALL CORRECT)

QuestionQuestion 14 out of 4 pointsWhich 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 24 out of 4 pointsThe moral hazard in team production arises fromSelected Answer:Correct Answer:Question 34 out of 4 pointsEconomic profit is defined as the difference between revenue and ____.Selected Answer:Correct Answer:Question 44 out of 4 pointsThe form of economics most relevant to managerial decision-making within the firm is:Selected Answer: Correct Answer:Question 54 out of 4 pointsPossible goals of Not-For-Profit (NFP) enterprises include all of the following EXCEPT:Selected Answer:Correct Answer:Question 64 out of 4 pointsRecently, 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 70 out of 4 pointsThe primary difference(s) between the standard deviation and the coefficient of variation as measures of risk are:Selected Answer:Correct Answer:Question 84 out of 4 pointsThe standard deviation is appropriate to compare the risk between two investments only ifSelected Answer:Correct Answer:Question 94 out of 4 pointsThe 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 104 out of 4 pointsAn closest example of a risk-free security isSelected Answer:Correct Answer:Question 114 out of 4 pointsBased 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 124 out of 4 pointsGenerally, investors expect that projects with high expected net present values also will be projects withSelected Answer:Correct Answer:Question 134 out of 4 pointsAn income elasticity (Ey) of 2.0 indicates that for a ____ increase in income, ____ will increase by ____.Selected Answer:Correct Answer:Question 144 out of 4 pointsThose goods having a calculated income elasticity that is negative are called:Selected Answer:Correct Answer:Question 154 out of 4 pointsAuto 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 becauseSelected Answer:Correct Answer:Question 164 out of 4 pointsSuppose 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 174 out of 4 pointsWhich of the following would tend to make demand INELASTIC?Selected Answer:Correct Answer:Question 184 out of 4 pointsA price elasticity (ED) of ?1.50 indicates that for a ____ increase in price, quantity demanded will ____ by ____.Selected Answer:Correct Answer:Question 194 out of 4 pointsThe factor(s) which cause(s) a movement along the demand curve include(s):Selected Answer:Correct Answer:Question 204 out of 4 pointsIn 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 210 out of 4 pointsWhen two or more "independent" variables are highly correlated, then we have:Selected Answer:Correct Answer:Question 224 out of 4 pointsWhen 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 234 out of 4 pointsThe standard deviation of the error terms in an estimated regression equation is known as:Selected Answer:Correct Answer:Question 244 out of 4 pointsThe 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 250 out of 4 pointsIn 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: