**Part 1**

Question

Question 1

4 out of 4 points

The moral hazard in team production arises from

Question 2

4 out of 4 points

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

Question 3

4 out of 4 points

Income tax payments are an example of ____.

Question 4

4 out of 4 points

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

4 out of 4 points

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

Question 6

4 out of 4 points

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

4 out of 4 points

The level of an economic activity should be increased to the point where the ____ is zero.

Question 8

4 out of 4 points

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

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?

Question 10

4 out of 4 points

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

Question 11

4 out of 4 points

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

Question 12

4 out of 4 points

An closest example of a risk-free security is

Question 13

4 out of 4 points

Songwriters and composers press music companies to lower the price for music downloads because

Question 14

4 out of 4 points

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

Question 15

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:

Question 16

4 out of 4 points

Producers’ goods are:

Question 17

4 out of 4 points

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

Question 18

4 out of 4 points

An increase in each of the following factors would normally provide a subsequent increase in quantity demanded, except:

Question 19

4 out of 4 points

Marginal revenue (MR) is ____ when total revenue is maximized.

Question 20

0 out of 4 points

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

4 out of 4 points

The constant or intercept term in a statistical demand study represents the quantity demanded when all independent variables are equal to:

Question 22

4 out of 4 points

In regression analysis, the existence of a significant pattern in successive values of the error term constitutes:

Question 23

4 out of 4 points

Demand functions in the multiplicative form are most common for all of the following reasons except:

Question 24

4 out of 4 points

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

Question 25

4 out of 4 points

In which of the following econometric problems do we find Durbin-Watson statistic being far away from 2.0?

**Part 2**

Question 1

4 out of 4 points

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

Question 2

4 out of 4 points

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

Question 3

4 out of 4 points

If two alternative economic models are offered, other things equal, we would

Question 4

4 out of 4 points

Time-series forecasting models:

Question 5

4 out of 4 points

The use of quarterly data to develop the forecasting model Yt = a +bYt-1 is an example of which forecasting technique?

Question 6

4 out of 4 points

Consumer expenditure plans is an example of a forecasting method. Which of the general categories best described this example?

Question 7

4 out of 4 points

In a recession, the trade balance often improves because

Question 8

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?

Question 9

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

Question 10

4 out of 4 points

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

4 out of 4 points

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

4 out of 4 points

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

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

Question 14

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:

Question 15

4 out of 4 points

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

Question 16

4 out of 4 points

In a relationship among total, average and marginal products, where TP is maximized:

Question 17

4 out of 4 points

Which of the following is never negative?

Question 18

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?

Question 19

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:

Question 20

4 out of 4 points

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

Question 21

4 out of 4 points

For a short-run cost function which of the following statements is (are) not true?

Question 22

4 out of 4 points

____ are defined as costs which are incurred regardless of the alternative action chosen in a decision-making problem.

Question 23

4 out of 4 points

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

Question 24

4 out of 4 points

If TC = 321 + 55Q – 5Q2, then average total cost at Q = 10 is:

Question 25

4 out of 4 points

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