An increase in the price of fuel and fertilizer used for corn would cause farmers to increase corn production in an effort to make up for lost profits. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Briefly explain how capacity utilization rates are used by forecasters. What will be an ideal response? ANSWER Capacity utilization rate is the ratio of production to capacity. Higher capacity utilization rates give firms the incentive to expand capacity through investment in new structures and equipment. Forecasters estimate that the threshold level for capacity utilizations […]
Date: September 10th, 2020
The test statistic used to test the hypothesis of whether a regression coefficient is significantly different from zero, holding all other independent variables constant, is called a(n): A) F-test. B) autocorrelation test. C) multicollinearity test. D) t-test. ANSWER D
Date: September 10th, 2020
Which of the following would not be categorized as a form of third-degree price discrimination? A) Group pricing. B) Promotional pricing. C) Versioning. D) Personalized pricing. ANSWER D
Date: September 10th, 2020
The ratio of the regression coefficient to its standard error is called: A) t-statistic. B) F-statistic. C) partial F-statistic. D) coefficient of determination. ANSWER A
Date: September 10th, 2020
________ is a flow of earnings per unit of time. A) Income B) Money C) Wealth D) Currency ANSWER A
Date: September 10th, 2020
You have the following information on personal consumption expenditures (C) and disposable income (Yd): Year C Yd 1 300 400 2 500 700 a. Compute the marginal propensity to consume. b. Compute the amount of savings for years 1 and 2. c. Compute the marginal propensity to save. ANSWER a. MPC = ΔC/ΔYd = […]
Date: September 10th, 2020
An international organization created at the Bretton Woods conference in 1944 that helps coordinate international financial flows and can arrange short-term loans between countries is called the: A) World Bank. B) International Monetary Fund. C) U.S. Treasury. D) U.S. Agency for International Development. ANSWER B
Date: September 10th, 2020
Financial institutions that accept deposits and make loans are called A) exchanges. B) banks. C) over-the-counter markets. D) finance companies. ANSWER B
Date: September 10th, 2020
It is frequently observed that when a city is located next to a major highway, gas stations located close to the highway charge higher prices than gas stations located farther away. This is an example of: A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) illegal price discrimination. ANSWER C
Date: September 10th, 2020
