Quiz 4A
Question 1
(1 point)

When considering effects on the automobile market, a decrease in auto worker health benefits leads to:


a shift in demand.

movement along the supply curve.

movement along the demand curve.

a shift in supply.

Question 2
(1 point)

Demand estimation in a controlled environment is possible with:


market experiments.

field studies.

regression analysis.

consumer surveys.

Question 3
(1 point)

A relation known with certainty is a:


statistical relation.

deterministic relation.

crosssection relation.

timeseries relation.

Question 4
(1 point)

A linear model implies:


a constant effect of X on Y.

constant elasticity.

a loglinear relation.

a constant effect of Y on X.

Question 5
(1 point)

A multiple regression model necessarily involves:


a linear relation.

more than one X variable.

a multiplicative relation.

more than one Y variable.

Question 6
(1 point)

To solve any system of equations, the number of unknown variables to be solved for must:


exceed the number of known equations.

equal the number of known equations.

be less than the number of unknown equations.

not exceed the number of known equations.

Question 7
(1 point)

The demand for most consumer goods is insensitive to changes in:


competitor prices.

the weather.

advertising.

the corporate income tax rate.

Question 8
(1 point)

Endogenous determinants of demand include:


competitor prices.

the weather.

interest rates.

advertising.

Question 9
(1 point)

Demand is always reduced by unanticipated change in:


technology that reduces production costs.

foreign competition.

government regulation that limits profits.

energy prices that increase production costs.

Question 10
(1 point)

Heteroskedasticity is produced by:


normally distributed residuals.

randomly distributed residuals.

autocorrelation.

nonconstant variance in the disturbance term.

Question 11
(1 point)

A decrease in demand is caused by:


an increase in price.

a decrease in price.

a decrease in advertising.

an increase in the price of substitutes.

Question 12
(1 point)

The longrun effect on demand of competitor productdevelopment strategies is:


less than the shortrun effect.

the same as the shortrun effect.

unrelated to the shortrun effect.

greater than the shortrun effect.

Question 13
(1 point)

A sample of market data taken at a point in time is a:


crosssection.

statistical series.

time series.

population.

Question 14
(1 point)

A measure of statistical significance for explained variation is given by the:


t statistic.

coefficient of determination.

corrected coefficient of determination.

F statistic.

Question 15
(1 point)

Multicollinearity is caused by:


high correlation among the X variables.

a linear XY relation.

a loglinear XY relation.

high correlation between Y and at least one X variable.

Question 16
(1 point)

When P = $5  $0.05Q, and Q = 40, the point price elasticity of demand is:


2/3.

3/2.

8/3.

3/8.

Question 17
(1 point)

When P = $5  $0.05Q, and quantity is increased from Q1 = 40 to Q2 = 60, the arc price elasticity of demand is:


1/2.

1.

4.

1/4.

Question 18
(1 point)

If a decrease in price causes total revenue to increase, the absolute value of the price elasticity of demand is:


greater than zero but less than one.

equal to one.

greater than one.

equal to zero.

Question 19
(1 point)

A deterministic relation is:


a simultaneous relation.

an imprecise link between two variables.

an association that is known with certainty.

a concurrent association.

Question 20
(1 point)

The number of observations beyond the minimum needed to calculate a given regression statistic is called:


a measure of the goodness of fit for a multiple regression model.

degrees of freedom.

the square of the coefficient of multiple correlation.

a measure of statistical significance for the share of dependent variable variation explained by the regression model.

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by the Contributing Authors.
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