Strayer ECONOMICS 550 MidTerm Part 1

Review Test Submission: Midterm Exam Part 1
Content

Course Managerial Economics & Globali
Test Midterm Exam Part 1

Instructions This midterm exam consist of 25 multiple choice questions and covers the material in Chapters 1 through 4.
• Question 1
0 out of 4 points

The moral hazard in team production arises from
Answer

• Question 2
4 out of 4 points

Shirking of one’s duties is often encountered in team production settings because
Answer

• Question 3
4 out of 4 points

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

• Question 4
4 out of 4 points

Possible goals of Not-For-Profit (NFP) enterprises include all of the following EXCEPT:
Answer

• Question 5
4 out of 4 points

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:
Answer

• Question 6
4 out of 4 points

Various executive compensation plans have been employed to motivate managers to make decisions that maximize shareholder wealth. These include:
Answer

• Question 7
4 out of 4 points

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

• Question 8
4 out of 4 points

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

• Question 9
4 out of 4 points

An closest example of a risk-free security is
Answer

• Question 10
4 out of 4 points

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

• Question 11
4 out of 4 points

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

• Question 12
4 out of 4 points

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?
Answer

• Question 13
4 out of 4 points

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

• Question 14
4 out of 4 points

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

• Question 15
4 out of 4 points

An increase in each of the following factors would normally provide a subsequent increase in quantity demanded, except:
Answer

• Question 16
4 out of 4 points

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

• Question 17
4 out of 4 points

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
Answer

• Question 18
4 out of 4 points

Producers' goods are:
Answer

• Question 19
4 out of 4 points

Which of the following would tend to make demand INELASTIC?
Answer

• Question 20
4 out of 4 points

Demand functions in the multiplicative form are most common for all of the following reasons except:
Answer

• Question 21
4 out of 4 points

When using a multiplicative power function (Y = a X1b1 X2b2 X3b3) to represent an economic relationship, estimates of the parameters (a, and the b's) using linear regression analysis can be obtained by first applying a ____ transformation to convert the function to a linear relationship.
Answer

• Question 22
4 out of 4 points

In which of the following econometric problems do we find Durbin-Watson statistic being far away from 2.0?
Answer

• Question 23
4 out of 4 points

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

• Question 24
4 out of 4 points

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

• Question 25
4 out of 4 points

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