solved 1-36 all mcq
1. Which of the following statements concerning the long-run average cost curve of economic theory is true?
Answer
It is L-shaped
It is n-shaped
It is ?-shaped
It is ?-shaped
It is M-shaped
2.Economies of scale exist whenever long-run average costs:
Answer
Increase as output is increased
Remain constant as output is increased
Decrease as output is increased
Decline and then rise as output is increased
3.For a short-run cost function which of the following statements is (are) not true?
Answer
The average fixed cost function is monotonically decreasing.
The marginal cost function intersects the average fixed cost function where the average variable cost function is a minimum.
The marginal cost function intersects the average variable cost function where the average variable cost function is a minimum.
The marginal cost function intersects the average total cost function where the average total cost function is a minimum.
4.The existence of diseconomies of scale (size) for the firm is hypothesized to result from:
Answer
transportation costs
imperfections in the labor market
imperfections in the capital markets
problems of coordination and control encountered by management
5.In which of the following econometric problems do we find Durbin-Watson statistic being far away from 2.0?
Answer
the identification problem
autocorrelation
multicollinearity
heteroscedasticity
agency problems
6.The method which can give some information in estimating demand of a product that hasn’t yet come to market is:
Answer
the consumer survey
market experimentation
a statistical demand analysis
plotting the data
the barometric method
7.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.
Answer
percentage, unit
percentage, percent
unit, unit
unit, percent
none of the above
8.All of the following are reasons why an association relationship may not imply a causal relationship except:
Answer
the association may be due to pure chance
the association may be the result of the influence of a third common factor
both variables may be the cause and the effect at the same time
the association may be hypothetical
9. Income tax payments are an example of ____.
Answer
implicit costs
explicit costs
normal return on investment
shareholder wealth
10.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:
Answer
equals zero.
is greater than the marginal cost of the test
is lower than the marginal cost of an additional test
equals the marginal cost of the test
11.Various executive compensation plans have been employed to motivate managers to make decisions that maximize shareholder wealth. These include:
Answer
cash bonuses based on length of service with the firm
bonuses for resisting hostile takeovers
requiring officers to own stock in the company
large corporate staffs
12.Economic profit is defined as the difference between revenue and ____.
Answer
explicit cost
total economic cost
implicit cost
shareholder wealth
13.Trading partners should specialize in producing goods in accordance with comparative advantage, then trade and diversify in consumption because
Answer
out-of-pocket costs of production decline
free trade areas protect infant industries
economies of scale are present
manufacturers face diminishing returns
more goods are available for consumption
14.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:
Answer
Even more intraregional trade of goods across the three countries.
Lower transaction costs of trading within North America.
A greater difficulty in helping Mexico as you can no longer deflate the Mexican peso.
Less migration of workers across the three countries.
An elimination of correlated macroeconomic shocks across the countries.
15.The purchasing power parity hypothesis implies that an increase in inflation in one country relative to another will over a long period of time
Answer
increase exports
reduce the competitive pressure on prices
lower the value of the currency in the country with the higher inflation rate
increase foreign aid
increase the speculative demand for the currency
16.An appreciation of the U.S. dollar has what impact on Harley-Davidson (HD), a U.S. manufacturer of motorcycles?
Answer
domestic sales of HD motorcycles increase and foreign sales of HD motorcycles increase
domestic sales of HD motorcycles decrease and foreign sales of HD motorcycles increase
domestic sales of HD motorcycles increase and foreign sales of HD motorcycles decrease
domestic sales of HD motorcycles decrease and foreign sales of HD motorcycles decrease
17.Time-series forecasting models:
Answer
are useful whenever changes occur rapidly and wildly
are more effective in making long-run forecasts than short-run forecasts
are based solely on historical observations of the values of the variable being forecaster
attempt to explain the underlying causal relationships which produce the observed outcome
18.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
19.An example of a time series data set is one for which the:
Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.
[order_calculator]