Script for timer.



1. As an objective, the maximization of profits ignores (Points: 3)
      
      
      
      


2. Which of the following is the best example of "how should goods and services be produced"? (Points: 2)
      
      
      
      


3. Which of the following best describes "Market Value Added"? (Points: 2)
      
      
      
      


4. Which of the following will result in the firm maximizing its profits? (Points: 3)
      
      
      
      


5. Transactions costs of a good or service being higher than internal provision: (Points: 3)
      
      
      
      


6. An increase in supply: (Points: 3)
      
      
      
      


7. Which of the following would indicate that price is temporarily above its market equilibrium? (Points: 3)
      
      
      
      


8. The guiding function of price is (Points: 3)
      
      
      
      


9. Two points are given on a linear demand curve: A (Q=5500, P = 0) and B(Q = 0, P =110).  The demand curve is given by (Points: 3)
      
      
      
      
      


10. Compared to last year, more television sets are being bought while the selling price has fallen. This could have caused by: (Points: 3)
      
      
      
      


11. Which of the following is not a factor which will shift the demand curve for some product? (Points: 3)
      
      
      
      


12. If we observe the price of a good or service rising, then this could have been caused by: (Points: 3)
      
      
      
      


13. Annual Demand and Supply for a computer company is given by:

Qd =  5000 +.5I +.2A -100P
Qs = -5000  + 100P

Q is the quantity per year, P is price, I is income and A is advertising expenditure.

Given that A = $10,000 and I = $25,000 what is the equilibrium price and quantity?

(Points: 4)
      
      
      
      


14. Complete the statement: If the price elasticity of demand is 0.60, a 20% increase in price will decrease the quantity demanded by ____ %. (Points: 3)
      
      
      
      


15. If an increase in the price of accordions does not change total revenue from accordion sales, we infer that the price elasticity of demand for accordions is ____________ . (Points: 3)
      
      
      
      


16. You have learnt that the concept of elasticity is more general than just price elasticity of demand.  Government economists sometimes talk of income tax rate elasticity of demand for consumer goods.  They mean: (Points: 3)
      
      
      
      


17. A technological improvement lowers the cost of producing corn.  As a result, the price of a pound of corn _________ and the quantity of corn______________.
(Points: 3)
      
      
      
      


18. Suppose a company uses the following regression equation to predict the growth of sales overtime: Y = 2.4 + 3.4t where t = time. What is the forecast for sales in year 5? (Points: 4)
      
      
      
      
      


19. If somebody says "R-square of my regression equation is very high", what could it possibly mean? (Points: 3)
      
      
      
      
      


20. USE THE INFORMATION BELOW FOR QUESTIONS 20, 21

In order to determine whether or not the sales volume of a company (Y in millions of dollars) is related to advertising expenditures (X1 in millions of dollars) and the number of salespeople (X2), data were gathered for 10 years. Part of the regression results is shown below.

Predictor Coefficient Standard error
Constant 7.0174 1.8972
X1 8.6233 2.3968
X2 0.0858 0.1845

Analysis of Variance

Source of Variation Degrees of Freedom Sum of Squares Mean Square F
Regression 321.11
Error 63.39


Use the above results and write the regression equation that can be used to predict sales. (Points: 3)
      
      
      
      
      


21. Using the rule of 2, test to see if the coefficient of X1 is significantly different from zero. (Points: 3)
      
      
      
      
      


22. Which of the following represents a situation in which a moving average forecast may be the most appropriate? (Points: 3)
      
      
      
      


23. Which of the following statements is / are true? (Points: 3)
      
      
      
      


24. Change in consumer price index for services, average duration of unemployment are all examples of (Points: 3)
      
      
      
      


25. The forecasting method that involves using an average of past observation to predict the future (if the forecaster feels that the future is a reflection of some average of past results) is the (Points: 4)
      
      
      
      
      


26. Given the demand function Q = 25 - 3.5P + 8I ( P = price and I = disposable income), the income elasticity of demand when P = 10 and I = 10 is: (Points: 4)
      
      
      
      
      


27. Valentine's Day is the best day of the year for selling roses at River Road Florist. Dozens of roses sold on Valentine's Day over six years are as follows:

YearDozen
1996104
1997109
1998101
1999114
2000104
2001100


What is the Mean Squared Error for years 1999 - 2001 using 3 year moving average? (Points: 4)
      
      
      
      
      


28. The following are actual sales for the periods given:

Period

Sales

1

750

2

820

3

600

4

850

5

900

6

 

If the exponential smoothing forcasting is used and the smoothing factor is .6, what will be the forecast for period 6?

(Points: 5)
      
      
      
      


29. Which of the following is a leading economic indicator? (Points: 3)
      
      
      
      


30. Charting observations on a semi-log graph will help the analyst to ascertain whether

 

(Points: 3)
      
      
      
      


31. The use of a dummy variable in regression analysis (Points: 3)
      
      
      
      


32. For a regression equation Q = 100 - 10X1 + 25X2, which of the following statements is true? (Points: 3)