ECO 550 Midterm Exam Part 1

Recently, the American Medical Association changed its recommendations on the frequency of pap-smear exams for women.  The new frequency recommendation was designed to address the family histories of the patients.  The optimal frequency should be where the marginal benefit of an additional pap-test:

Income tax payments are an example of ____.

The moral hazard in team production arises from

The primary objective of a for-profit firm is to ___________.

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?

The Saturn Corporation (once a division of GM) was permanently closed in 2009.  What went wrong with Saturn?

The approximate probability of a value occurring that is greater than one standard deviation from the mean is approximately (assuming a normal distribution)

Based on risk-return tradeoffs observable in the financial marketplace, which of the following securities would you expect to offer higher expected returns than corporate bonds?

The level of an economic activity should be increased to the point where the ____ is zero.

An closest example of a risk-free security is

The primary difference(s) between the standard deviation and the coefficient of variation as measures of risk are:

The standard deviation is appropriate to compare the risk between two investments only if

Iron ore is an example of a:

Auto dealers slash prices at the end of the model year in response to deficient demand/excess inventory but restaurants facing the same problem slash production because

Those goods having a calculated income elasticity that is negative are called:

Marginal revenue (MR) is ____ when total revenue is maximized.

The factor(s) which cause(s) a movement along the demand curve include(s):

A price elasticity (E_D) of −1.50 indicates that for a ____ increase in price, quantity demanded will ____ by ____.

Songwriters and composers press music companies to lower the price for music downloads because

The standard deviation of the error terms in an estimated regression equation is known as:

In testing whether each individual independent variables (Xs) in a multiple regression equation is statistically significant in explaining the dependent variable (Y), one uses the:

The method which can give some information in estimating demand of a product that hasn’t yet come to market is:

When two or more "independent" variables are highly correlated, then we have:

One commonly used test in checking for the presence of autocorrelation when working with time series data is the ____.

The Identification Problem in the development of a demand function is a result of: