ECO 550 Managerial Economics & Globalization Midterm 2 Answers (Summer Semester 2017)
If two alternative economic models are offered, other things equal, we would
The forecasting technique which attempts to forecast short-run changes and makes use of economic indicators known as leading, coincident or lagging indicators is known as:
Smoothing techniques are a form of ____ techniques which assume that there is an underlying pattern to be found in the historical values of a variable that is being forecast
The type of economic indicator that can best be used for business forecasting is the:
Time-series forecasting models:
If Ben Bernanke, Chair of the Federal Reserve Board, begins to tighten monetary policy by raising US interest rates next year, what is the likely impact on the value of the dollar?
European Union labor costs exceed U.S. and British labor costs primarily because
In an open economy with few capital restrictions and substantial import-export trade, a rise in interest rates and a decline in the producer price index of inflation will
Trading partners should specialize in producing goods in accordance with comparative advantage, then trade and diversify in consumption because
In Chinese coastal provinces, brick housing for a fast expanding middle class is very comparable in size to housing in the U.S. for a family with median income of $51,000 because
Companies that reduce their margins on export products in the face of appreciation of their home currency may be motivated by a desire to
The purchasing power parity hypothesis implies that an increase in inflation in one country relative to another will over a long period of time
If the marginal product of labor is 100 and the price of labor is 10, while the marginal product of capital is 200 and the price of capital is $30, then what should the firm?
Given a Cobb-Douglas production function estimate of Q = 1.19L.72K.18 for a given industry, this industry would have:
The isoquants for inputs that are perfect complements for one another consist of a series of:
The marginal product is defined as:
Marginal revenue product is defined as the amount that an additional unit of the variable input adds to ____.
The isoquants for inputs that are perfect substitutes for one another consist of a series of:
The existence of diseconomies of scale (size) for the firm is hypothesized to result from:
If TC = 321 + 55Q - 5Q2, then average total cost at Q = 10 is:
Economies of scale exist whenever long-run average costs:
According to the theory of cost, specialization in the use of variable resources in the short-run results initially in:
The cost function is:
___ are defined as costs which are incurred regardless of the alternative action chosen in a decision-making problem.
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