Quiz 4B
Question 1
(1 point)

If P1 = $5, Q1 = 10,000, P2 = $6 and Q2 = 5,000, then a linear estimate of the demand curve is:


P = $7  $0.002Q

P = $5 + $10,000Q

Q = 7  0.002P

Q = 35,000  5,000P

Question 2
(1 point)

If P1 = $5, Q1 = 10,000, P2 = $6 and Q2 = 5,000, then at point P2 an estimate of the point price elasticity eP equals:


6

2.5

4.25

0.12

Question 3
(1 point)

If P1 = $5, Q1 = 10,000, P2 = $6 and Q2 = 5,000, then at point P1 an estimate of the point price elasticity eP equals:


6

2.5

4.25

0.12

Question 4
(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 5
(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 6
(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 7
(1 point)

Movement along a demand curve is indicated by the quantity effect of a change in:


advertising.

price of other goods.

income.

price.

Question 8
(1 point)

Endogenous determinants of demand include:


competitor prices.

the weather.

interest rates.

firm advertising.

Question 9
(1 point)

Demand is always reduced by unanticipated changes in:


technology that reduces production costs.

foreign competition.

government regulation that limits profits.

energy prices that increase production costs.

Question 10
(1 point)

A decrease in demand can be expected following:


an increase in price.

a decrease in price.

a decrease in advertising.

an increase in the price of substitutes.

Question 11
(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 12
(1 point)

In a simple regression model, the correlation coefficient is:


equal to one.

greater than one.

less than one.

the square root of the coefficient of determination.

Question 13
(1 point)

After controlling for the influence of all X variables, the standard deviation of the dependent Y variable is given by:




SEE


Question 14
(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 15
(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 16
(1 point)

A multiplicative model is:


a plot of XY data.

the relation between one dependent Y variable and one independent X variable.

a straightline relation.

a nonlinear relation that involves X variable interactions.

Question 17
(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.

Question 18
(1 point)

Tests of the b = 0 hypothesis are:


tests for the share of dependent variable variation explained by the regression model.

onetail t tests.

twotail t tests

tests of direction or comparative magnitude.

Question 19
(1 point)

In a multiplicative demand model, the income elasticity of demand can be influenced by:


income.

price.

price of other goods.

all of these.

Question 20
(1 point)

Suppose Q1 = 50 when P1 = $25, and Q2 = 20 when P2 = $40. A linear estimate of the demand curve is:


P = $50  $0.5Q

P = $50 + $0.5Q

Q = 100 + 2P

Q = 100  0.5P

Copyright 2008,
by the Contributing Authors.
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