Question 1

When a variable is determined by a factor outside of the function or model being evaluated,it is said to be

Accepted Answer

A)  endogenous. 
B)  exogenous. 
C)  unexplained. 
D)  statistically insignificant. 
A)  endogenous. 
B)  exogenous. 
C)  unexplained. 
D)  statistically insignificant. B

Question 2

If demand is inelastic

Accepted Answer

A)  then it changes very little in response to a price change. 
B)  then it changes significantly in response to a price change. 
C)  then demand is zero. 
D)  then demand is infinite. 
A)  then it changes very little in response to a price change. 
B)  then it changes significantly in response to a price change. 
C)  then demand is zero. 
D)  then demand is infinite. A

Question 3

If the price of a slice of pizza rises from $2.50 to $3,and quantity demanded falls from 10,000 slices to 7,400 slices,using the formula for arc price elasticity what is the percentage change in quantity?

Accepted Answer

A)  -18.18% 
B)  -29.89% 
C)  -26% 
D)  -35.14% 
A)  -18.18% 
B)  -29.89% 
C)  -26% 
D)  -35.14% B

Question 4

Elasticity along a downward sloping linear demand curve

Accepted Answer

A)  is constant and equal to the slope of the curve. 
B)  is constant and equal to the slope times the ratio of price to quantity. 
C)  changes along the curve. 
D)  does not vary with price unless the good is expensive. 
A)  is constant and equal to the slope of the curve. 
B)  is constant and equal to the slope times the ratio of price to quantity. 
C)  changes along the curve. 
D)  does not vary with price unless the good is expensive.

Question 5

The market demand for wheat is Q = 100 - 2p + 1pb,where pb is the price of barley.The cross price elasticity of demand for wheat with respect to barley

Accepted Answer

A)  cannot be calculated from just the information provided. 
B)  is negative. 
C)  suggests that wheat and barley are complements. 
D)  equals 1. 
A)  cannot be calculated from just the information provided. 
B)  is negative. 
C)  suggests that wheat and barley are complements. 
D)  equals 1.

Question 6

If demand is elastic

Accepted Answer

A)  then it changes very little in response to a price change. 
B)  then it changes very much in response to a price change. 
C)  then demand is zero. 
D)  then demand is infinite. 
A)  then it changes very little in response to a price change. 
B)  then it changes very much in response to a price change. 
C)  then demand is zero. 
D)  then demand is infinite.

Question 7

-The above figure shows the demand curve for crude oil.If the market price is $10 a barrel,what is the price elasticity of demand?

Accepted Answer

A)  -.02 
B)  -1 
C)  -10 
D)  -500 
A)  -.02 
B)  -1 
C)  -10 
D)  -500

Question 8

As prices change,the elasticity of supply describes the movement

Accepted Answer

A)  of a shift in the supply curve. 
B)  of the equilibrium price. 
C)  along the supply curve. 
D)  from a necessity to a luxury good. 
A)  of a shift in the supply curve. 
B)  of the equilibrium price. 
C)  along the supply curve. 
D)  from a necessity to a luxury good.

Question 9

If the price elasticity of demand for a good is less than one in absolute value,economists would characterize consumers of this good

Accepted Answer

A)  as not very sensitive to price. 
B)  as not very sensitive to the quantity they demand. 
C)  as very sensitive to price. 
D)  as elastic. 
A)  as not very sensitive to price. 
B)  as not very sensitive to the quantity they demand. 
C)  as very sensitive to price. 
D)  as elastic.

Question 10

The gap between the actual and predicted values of a dependent variable is called

Accepted Answer

A)  the error term. 
B)  an exogenous factor. 
C)  the residual. 
D)  an endogenous factor. 
A)  the error term. 
B)  an exogenous factor. 
C)  the residual. 
D)  an endogenous factor.

Question 11

If the demand curve for slices of pizza is given as Q = 300 - 16p,then the point elasticity of demand when price is $1.50 is

Accepted Answer

A)  -24. 
B)  -16. 
C)  -0.0054. 
D)  -0.087. 
A)  -24. 
B)  -16. 
C)  -0.0054. 
D)  -0.087.

Question 12

Which of the following statements is TRUE?

Accepted Answer

A)  If two variables X and Y are correlated, then X causes changes in Y. 
B)  If two variables X and Y are correlated, then Y causes changes in X. 
C)  If X causes changes in Y, then X and Y are correlated. 
D)  None of the above. 
A)  If two variables X and Y are correlated, then X causes changes in Y. 
B)  If two variables X and Y are correlated, then Y causes changes in X. 
C)  If X causes changes in Y, then X and Y are correlated. 
D)  None of the above.

Question 13

When a variable is determined by a factor inside of the function or model being evaluated,it is said to be

Accepted Answer

A)  endogenous. 
B)  exogenous. 
C)  unexplained. 
D)  statistically insignificant. 
A)  endogenous. 
B)  exogenous. 
C)  unexplained. 
D)  statistically insignificant.

Question 14

A regression analysis with ________ explanatory variables is called a ________.

Accepted Answer

A)  two or less; limited regression 
B)  exactly two; binomial least squares regression 
C)  one; dependent regression 
D)  two or more; multivariate regression 
A)  two or less; limited regression 
B)  exactly two; binomial least squares regression 
C)  one; dependent regression 
D)  two or more; multivariate regression

Question 15

Sometimes distinct patterns around a trend line can be caused by

Accepted Answer

A)  poor underlying data. 
B)  dummy variables. 
C)  seasonal variation. 
D)  statistical anomalies. 
A)  poor underlying data. 
B)  dummy variables. 
C)  seasonal variation. 
D)  statistical anomalies.

Question 16

If using a 95% confidence interval and the absolute value of the t-statistic is larger than the critical value,then

Accepted Answer

A)  we accept the null hypothesis at a 95% confidence level. 
B)  we reject the null hypothesis at a 95% confidence level. 
C)  we will be wrong less than 5% of the time if we accept the null hypothesis. 
D)  we will be wrong 95% of the time if we reject the null hypothesis. 
A)  we accept the null hypothesis at a 95% confidence level. 
B)  we reject the null hypothesis at a 95% confidence level. 
C)  we will be wrong less than 5% of the time if we accept the null hypothesis. 
D)  we will be wrong 95% of the time if we reject the null hypothesis.

Question 17

Smoothing a time series of observations

Accepted Answer

A)  is a form of statistical cheating. 
B)  is used to reveal an underlying pattern in the data. 
C)  renders the resultant forecast unusable. 
D)  allows statisticians to use less data than would otherwise be required. 
A)  is a form of statistical cheating. 
B)  is used to reveal an underlying pattern in the data. 
C)  renders the resultant forecast unusable. 
D)  allows statisticians to use less data than would otherwise be required.

Question 18

In regression analysis,the dependent variable

Accepted Answer

A)  is always quantity demanded. 
B)  is the variable whose variation is to be explained. 
C)  is one of the factors that explains what is happening with demand. 
D)  is represented by the inverse demand function. 
A)  is always quantity demanded. 
B)  is the variable whose variation is to be explained. 
C)  is one of the factors that explains what is happening with demand. 
D)  is represented by the inverse demand function.

Question 19

If the demand curve for a good always has unitary price elasticity,what does this imply about consumer behavior?

Accepted Answer

A)  Consumers do not react to a price change. 
B)  Consumers will spend a constant total amount on the good. 
C)  Consumers are irrational. 
D)  Consumers do not obey the Law of Demand. 
A)  Consumers do not react to a price change. 
B)  Consumers will spend a constant total amount on the good. 
C)  Consumers are irrational. 
D)  Consumers do not obey the Law of Demand.

Question 20

If demand is perfectly inelastic

Accepted Answer

A)  then a 1% increase in price leads to a fall in quantity of greater than 1%. 
B)  then a 1% increase in price leads to a fall in quantity of less than 1%. 
C)  then a 1% increase in prices then quantity demanded falls to zero. 
D)  then a 1% increase in price has no effect on quantity demanded. 
A)  then a 1% increase in price leads to a fall in quantity of greater than 1%. 
B)  then a 1% increase in price leads to a fall in quantity of less than 1%. 
C)  then a 1% increase in prices then quantity demanded falls to zero. 
D)  then a 1% increase in price has no effect on quantity demanded.

When a variable is determined by a factor outside of the function or model being evaluated,it is said to be

If demand is inelastic

If the price of a slice of pizza rises from $2.50 to $3,and quantity demanded falls from 10,000 slices to 7,400 slices,using the formula for arc price elasticity what is the percentage change in quantity?

Elasticity along a downward sloping linear demand curve

The market demand for wheat is Q = 100 - 2p + 1pb,where pb is the price of barley.The cross price elasticity of demand for wheat with respect to barley

If demand is elastic

-The above figure shows the demand curve for crude oil.If the market price is $10 a barrel,what is the price elasticity of demand?

As prices change,the elasticity of supply describes the movement

If the price elasticity of demand for a good is less than one in absolute value,economists would characterize consumers of this good

The gap between the actual and predicted values of a dependent variable is called

If the demand curve for slices of pizza is given as Q = 300 - 16p,then the point elasticity of demand when price is $1.50 is

Which of the following statements is TRUE?

When a variable is determined by a factor inside of the function or model being evaluated,it is said to be

A regression analysis with explanatory variables is called a .

Sometimes distinct patterns around a trend line can be caused by

If using a 95% confidence interval and the absolute value of the t-statistic is larger than the critical value,then

Smoothing a time series of observations

In regression analysis,the dependent variable

If the demand curve for a good always has unitary price elasticity,what does this imply about consumer behavior?

If demand is perfectly inelastic

Introduction

Supply and Demand

Consumer Choice

Production

Costs

Firm Organization and Market Structure

Competitive Firms and Markets

Monopoly

Pricing With Market Power

Oligopoly and Monopolistic Competition

Game Theory and Business Strategy

Strategies Over Time

Managerial Decision-Making Under Uncertainty

Asymmetric Information

Government and Business

Global Business

Filters

Exam 3: Empirical Methods for Demand Analysis

When a variable is determined by a factor outside of the function or model being evaluated,it is said to be

If demand is inelastic

If the price of a slice of pizza rises from $2.50 to $3,and quantity demanded falls from 10,000 slices to 7,400 slices,using the formula for arc price elasticity what is the percentage change in quantity?

Elasticity along a downward sloping linear demand curve

The market demand for wheat is Q = 100 - 2p + 1pb,where pb is the price of barley.The cross price elasticity of demand for wheat with respect to barley

If demand is elastic

-The above figure shows the demand curve for crude oil.If the market price is $10 a barrel,what is the price elasticity of demand?

As prices change,the elasticity of supply describes the movement

If the price elasticity of demand for a good is less than one in absolute value,economists would characterize consumers of this good

The gap between the actual and predicted values of a dependent variable is called

If the demand curve for slices of pizza is given as Q = 300 - 16p,then the point elasticity of demand when price is $1.50 is

Which of the following statements is TRUE?

When a variable is determined by a factor inside of the function or model being evaluated,it is said to be

A regression analysis with ________ explanatory variables is called a ________.

Sometimes distinct patterns around a trend line can be caused by

If using a 95% confidence interval and the absolute value of the t-statistic is larger than the critical value,then

Smoothing a time series of observations

In regression analysis,the dependent variable

If the demand curve for a good always has unitary price elasticity,what does this imply about consumer behavior?

If demand is perfectly inelastic

Introduction

Supply and Demand

Consumer Choice

Production

Costs

Firm Organization and Market Structure

Competitive Firms and Markets

Monopoly

Pricing With Market Power

Oligopoly and Monopolistic Competition

Game Theory and Business Strategy

Strategies Over Time

Managerial Decision-Making Under Uncertainty

Asymmetric Information

Government and Business

Global Business

Filters

A regression analysis with explanatory variables is called a .