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Quiz 4B

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 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 log-linear 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 long-run effect on demand of competitor product-development strategies is: less than the short-run effect. the same as the short-run effect. unrelated to the short-run effect. greater than the short-run 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 log-linear 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 straight-line 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. one-tail t tests. two-tail 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. Cite/attribute Resource . admin. (2009, January 27). Quiz 4B. Retrieved January 07, 2011, from Free Online Course Materials — USU OpenCourseWare Web site: http://ocw.usu.edu/economics/managerial-economics/quiz4b.htm. This work is licensed under a Creative Commons License