ECO 550 Midterm 2

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:

An example of a time series data set is one for which the:

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:

The type of economic indicator that can best be used for business forecasting is the:

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.

Which of the following barometric indicators would be the most helpful for forecasting future sales for an industry?

The optimal currency area involves a trade-off of reducing transaction costs but the inability to use changes in exchange rates to help ailing regions.  If the US, Canada, and Mexico had one single currency (the Peso-Dollar) we would tend to see all of the following EXCEPT:

If the British pound (₤) appreciates by 10% against the dollar:

In a recession, the trade balance often improves because

Trading partners should specialize in producing goods in accordance with comparative advantage, then trade and diversify in consumption because

Purchasing power parity or PPP says the ratios composed of:

European Union labor costs exceed U.S. and British labor costs primarily because

The import of Apple iPads assembled in Shanghai at a $295 wholesale price ($213 cost and $82 profit margin) adds more than it should to the U.S. trade deficit with China because

In a production process, an excessive amount of the variable input relative to the fixed input is being used to produce the desired output. This statement is true for:

Which of the following is never negative?

The combinations of inputs costing a constant C dollars is called:

Marginal factor cost is defined as the amount that an additional unit of the variable input adds to ____.

Given a Cobb-Douglas production function estimate of Q = 1.19L^.72K^.18 for a given industry, this industry would have:

The marginal product is defined as:

Economies of scale exist whenever long-run average costs:

Economies of Scope refers to situations where per unit costs are:

For a short-run cost function which of the following statements is (are) not true?

According to the theory of cost, specialization in the use of variable resources in the short-run results initially in:

What method of inventory valuation should be used for economic decision-making problems?