The F-statistic is an alternative measure of goodness-of-fit of an estimated regression equation and defined as the: A) variation not explained by the regression equation relative to the variation explained. B) variation explained by the regression equation to the variation not explained. C) variation explained. D) variation not explained. ANSWER B
Which of the following is an example of price discrimination? A) Increasing the price of a product when demand for the product increases. B) Charging different prices for a product in different regions of the country due to differences in transportation costs. C) Bundling complementary products to attract additional sales. D) Reducing the price of […]
The upward and downward movement of aggregate output produced in the economy is referred to as the A) roller coaster. B) see saw. C) business cycle. D) shock wave. ANSWER C
The spread between the interest rates on bonds with default risk and default-free bonds is called the A) risk premium. B) junk margin. C) bond margin. D) default premium. ANSWER A
The range of values in which we can be confident that the true regression coefficient lies within a given degree of probability is called a: A) prediction interval. B) confidence interval. C) logistic regression. D) none of the above. ANSWER B
Which of the following statements regarding a price-taking firm is correct? A) Demand = average revenue > marginal revenue. B) Demand = marginal revenue > average revenue. C) Demand = price = average revenue = marginal revenue. D) Demand = price > average revenue > marginal revenue. ANSWER C
Distinguish between the short-run and long-run factors that affect residential investment. What will be an ideal response? ANSWER Demographic factors such as population trends, migration patterns, and rate of household formation encompass the major long-run factors that influence new residential investment. The behavior the business cycle in terms of employment, interest rates, and inflation […]
An individual’s annual salary is her A) money. B) income. C) wealth. D) liabilities. ANSWER B
Which of the following bonds are considered to be default-risk free? A) municipal bonds B) investment-grade bonds C) U.S. Treasury bonds D) junk bonds ANSWER C
The delivery of financial services electronically is called A) e-business. B) e-commerce. C) e-finance. D) e-possible. ANSWER C
