Fall 2009 – Exam I
1.
Marginal revenue is positive in the region of the demand curve for which:
a)
E
Q,P
< 1
b) E
Q,P
= 1
c) E
Q,P
> 1
d) E
Q,P
> 0
2.
Two goods X and Y are complements if
a)
y
x
P
Q
E
,
< 0
b)
y
x
P
Q
E
,
= 0
c)
y
x
P
Q
E
,
> 0
d)
y
x
P
Q
E
,
≠
0
Short run cost curves for Chimeric Images are shown below:
The company employs two inputs: capital and labor.
Capital is fixed during this short run production
period.
The wage rate w = 300, and the rental rate of capital = 600.
3.
Chimeric Images is using _____ units of capital.
4.
At the output level Q = 1200, Chimeric Images employs _____units of labor.
5.
At output level Q = 1200, the marginal product of labor equals:
6.
At Q = 1200, the marginal product of capital equals 6.
In the long run, Chimeric images can
decrease the cost of producing 1200 units by:
a)
using more capital and less labor.
b)
using less capital and less labor.
c)
using less capital and more labor.
d)
None of the above: Chimeric is currently minimizing the long run cost of producing Q = 1200.
BLUE – Page 1 of 5
ATC
AVC
MC
Q
$
1200
150
100
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7.
Statisticians test the overall significance of a regression equation using the ____ statistic.
8.
The percentage of variation in the “left hand side” variable explained by variation in the “right
hand side” variables in a regression equation can be determined using the ____ statistic.
9.
Ajax, Inc. has current profits of 80 million dollars.
Profits for the company are expected to grow
at a rate of 4 percent per year into the indefinite future.
The current rate of time discount, or rate
of interest, is 6 percent.
Ajax has already paid dividends to shareholders this year.
The market
value of Ajax, Inc is _________ billion dollars.
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 Fall '09
 HOLLAND
 Economics, Supply And Demand, Marginal product, perfectly competitive market, rental rate, residential heating fuel

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