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ECO 550 Midterm Quiz
This midterm exam consist of 32 multiple choice questions and covers the material in Chapters 1 through 8. There are four questions from each chapter. 1). The flat-screen plasma TVs are selling extremely well. The originators of this technology are earning higher profits. What theory of profit best reflects the performance of the plasma screen makers? 2). To reduce Agency Problems, executive compensation should be designed to: 3). Economic profit is defined as the difference between revenue and ____. 4). Which of the following will increase (V0), the shareholder wealth maximization model of the firm: 5). A change in the level of an economic activity is desirable and should be undertaken as long as the marginal benefits exceed the ____. 6). The closest example of a risk-free security is
7). The primary difference(s) between the standard deviation and the coefficient of variation as measures of risk are: 8). The ____ is the ratio of ____ to the ____.
9). If demand were inelastic, then we should immediately:
10). Producers' goods are:
11). Marginal revenue (MR) is ____ when total revenue is maximized. 12). Suppose we estimate that the demand elasticity for fine leather jackets is ‑.7 at their current prices. Then we know that: 13). The method which can give some information in estimating demand of a product that hasn’t yet come to market is: 14). The standard deviation of the error terms in an estimated regression equation is known as: 15). All of the following are reasons why an association relationship may not imply a causal relationship except: 16). Demand functions in the multiplicative form are most common for all of the following reasons except: 17). The variation in an economic time-series which is caused by major expansions or contractions usually of greater than a year in duration is known as: 18). The forecasting technique which attempts to forecast short-run changes and makes use of economic indicators...
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