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:
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:
The use of quarterly data to develop the forecasting model Yt = a +bYt−1 is an example of which forecasting technique?
If two alternative economic models are offered, other things equal, we would
An example of a time series data set is one for which the:
Companies that reduce their margins on export products in the face of appreciation of their home currency may be motivated by a desire to
The purchasing power parity hypothesis implies that an increase in inflation in one country relative to another will over a long period of time
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
In a recession, the trade balance often improves because
The optimal currency area involves a trade-off of reducing transaction costs but the inability to use changes in exchange rates to help ailing regions. If the US, Canada, and Mexico had one single currency (the Peso-Dollar) we would tend to see all of the following EXCEPT:
An increase in the exchange rate of the U.S. dollar relative to a trading partner can result from
If the British pound (₤) appreciates by 10% against the dollar:
The marginal product is defined as:
Which of the following is never negative?
The combinations of inputs costing a constant C dollars is called:
Marginal factor cost is defined as the amount that an additional unit of the variable input adds to ____.
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:
The marginal rate of technical substitution may be defined as all of the following except:
The cost function is:
If TC = 321 + 55Q – 5Q2, then average total cost at Q = 10 is:
According to the theory of cost, specialization in the use of variable resources in the short- run results initially in:
The existence of diseconomies of scale (size) for the firm is hypothesized to result from:
What method of inventory valuation should be used for economic decision-making problems?
Economies of scale exist whenever long-run average costs:
Possible goals of Not-For-Profit (NFP) enterprises include all of the following EXCEPT:
The primary objective of a for-profit firm is to ___________.
Income tax payments are an example of ____.
Economic profit is defined as the difference between revenue and ____.
A change in the level of an economic activity is desirable and should be undertaken as long as the marginal benefits exceed the
The standard deviation is appropriate to compare the risk between two investments only if
The level of an economic activity should be increased to the point where the ____ is zero.
The net present value of an investment represents
An income elasticity (Ey) of 2.0 indicates that for a ____ increase in income, ____ will increase by ____.
A price elasticity (ED) of −1.50 indicates that for a ____ increase in price, quantity demanded will ____ by ____.
Marginal revenue (MR) is ____ when total revenue is maximized.
An increase in each of the following factors would normally provide a subsequent increase in quantity demanded, except:
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.
The method which can give some information in estimating demand of a product that hasn’t yet come to market is:
When two or more “independent” variables are highly correlated, then we have:
One commonly used test in checking for the presence of autocorrelation when working with time series data is the ____.
Consumer expenditure plans is an example of a forecasting method. Which of the general categories best described this example?
Time-series forecasting models:
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:
Which of the following barometric indicators would be the most helpful for forecasting future sales for an industry?
The purchasing power parity hypothesis implies that an increase in inflation in one country relative to another will over a long period of time
If the British pound (₤) appreciates by 10% against the dollar:
Companies that reduce their margins on export products in the face of appreciation of their home currency may be motivated by a desire to
Using demand and supply curves for the Japanese yen based on the $/¥ price for yen, an increase in US INFLATION RATES would
Marginal factor cost is defined as the amount that an additional unit of the variable input adds to ____.
Given a Cobb-Douglas production function estimate of Q = 1.19L.72K.18 for a given industry, this industry would have:
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:
The primary purpose of the Cobb-Douglas power function is to:
Which of the following statements concerning the long-run average cost curve of economic theory is true?
The cost function is:
What method of inventory valuation should be used for economic decision- making problems?
According to the theory of cost, specialization in the use of variable resources in the short-run results initially in: