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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:
  1. P = $7 - $0.002Q
  2. P = $5 + $10,000Q
  3. Q = 7 - 0.002P
  4. 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:
  1. -6
  2. -2.5
  3. -4.25
  4. -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:
  1. -6
  2. -2.5
  3. -4.25
  4. -0.12
Question 4 (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 5 (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 6 (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 7 (1 point)
Movement along a demand curve is indicated by the quantity effect of a change in:
  1. advertising.
  2. price of other goods.
  3. income.
  4. price.
Question 8 (1 point)
Endogenous determinants of demand include:
  1. competitor prices.
  2. the weather.
  3. interest rates.
  4. firm advertising.
Question 9 (1 point)
Demand is always reduced by unanticipated changes 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)
A decrease in demand can be expected following:
  1. an increase in price.
  2. a decrease in price.
  3. a decrease in advertising.
  4. an increase in the price of substitutes.
Question 11 (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 12 (1 point)
In a simple regression model, the correlation coefficient is:
  1. equal to one.
  2. greater than one.
  3. less than one.
  4. 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:
  1. R Square
  2. R Bar Square
  3. SEE
  4. Y-hat subscript t
Question 14 (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 15 (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 16 (1 point)
A multiplicative model is:
  1. a plot of XY data.
  2. the relation between one dependent Y variable and one independent X variable.
  3. a straight-line relation.
  4. 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:
  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.
Question 18 (1 point)
Tests of the b = 0 hypothesis are:
  1. tests for the share of dependent variable variation explained by the regression model.
  2. one-tail t tests.
  3. two-tail t tests
  4. tests of direction or comparative magnitude.
Question 19 (1 point)
In a multiplicative demand model, the income elasticity of demand can be influenced by:
  1. income.
  2. price.
  3. price of other goods.
  4. 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:
  1. P = $50 - $0.5Q
  2. P = $50 + $0.5Q
  3. Q = 100 + 2P
  4. 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 Creative Commons License