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Quiz 4A

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Question 1 (1 point)
When considering effects on the automobile market, a decrease in auto worker health benefits leads to:
  1. a shift in demand.
  2. movement along the supply curve.
  3. movement along the demand curve.
  4. a shift in supply.
Question 2 (1 point)
Demand estimation in a controlled environment is possible with:
  1. market experiments.
  2. field studies.
  3. regression analysis.
  4. consumer surveys.
Question 3 (1 point)
A relation known with certainty is a:
  1. statistical relation.
  2. deterministic relation.
  3. cross-section relation.
  4. time-series relation.
Question 4 (1 point)
A linear model implies:
  1. a constant effect of X on Y.
  2. constant elasticity.
  3. a log-linear relation.
  4. a constant effect of Y on X.
Question 5 (1 point)
A multiple regression model necessarily involves:
  1. a linear relation.
  2. more than one X variable.
  3. a multiplicative relation.
  4. 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:
  1. exceed the number of known equations.
  2. equal the number of known equations.
  3. be less than the number of unknown equations.
  4. not exceed the number of known equations.
Question 7 (1 point)
The demand for most consumer goods is insensitive to changes in:
  1. competitor prices.
  2. the weather.
  3. advertising.
  4. the corporate income tax rate.
Question 8 (1 point)
Endogenous determinants of demand include:
  1. competitor prices.
  2. the weather.
  3. interest rates.
  4. advertising.
Question 9 (1 point)
Demand is always reduced by unanticipated change in:
  1. technology that reduces production costs.
  2. foreign competition.
  3. government regulation that limits profits.
  4. energy prices that increase production costs.
Question 10 (1 point)
Heteroskedasticity is produced by:
  1. normally distributed residuals.
  2. randomly distributed residuals.
  3. autocorrelation.
  4. nonconstant variance in the disturbance term.
Question 11 (1 point)
A decrease in demand is caused by:
  1. an increase in price.
  2. a decrease in price.
  3. a decrease in advertising.
  4. an increase in the price of substitutes.
Question 12 (1 point)
The long-run effect on demand of competitor product-development strategies is:
  1. less than the short-run effect.
  2. the same as the short-run effect.
  3. unrelated to the short-run effect.
  4. greater than the short-run effect.
Question 13 (1 point)
A sample of market data taken at a point in time is a:
  1. cross-section.
  2. statistical series.
  3. time series.
  4. population.
Question 14 (1 point)
A measure of statistical significance for explained variation is given by the:
  1. t statistic.
  2. coefficient of determination.
  3. corrected coefficient of determination.
  4. F statistic.
Question 15 (1 point)
Multicollinearity is caused by:
  1. high correlation among the X variables.
  2. a linear XY relation.
  3. a log-linear XY relation.
  4. 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:
  1. -2/3.
  2. -3/2.
  3. -8/3.
  4. -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. -1/2.
  2. -1.
  3. -4.
  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:
  1. greater than zero but less than one.
  2. equal to one.
  3. greater than one.
  4. equal to zero.
Question 19 (1 point)
A deterministic relation is:
  1. a simultaneous relation.
  2. an imprecise link between two variables.
  3. an association that is known with certainty.
  4. a concurrent association.
Question 20 (1 point)
The number of observations beyond the minimum needed to calculate a given regression statistic is called:
  1. a measure of the goodness of fit for a multiple regression model.
  2. degrees of freedom.
  3. the square of the coefficient of multiple correlation.
  4. a measure of statistical significance for the share of dependent variable variation explained by the regression model.
Copyright 2008, by the Contributing Authors. Cite/attribute Resource. admin. (2009, January 27). Quiz 4A. Retrieved November 23, 2009, from Free Online Course Materials — USU OpenCourseWare Web site: http://ocw.usu.edu/economics/managerial-economics/quiz4a.htm. This work is licensed under a Creative Commons License. Creative Commons License