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BUSINESS 802 FIRST EXAM KEY A FALL 1992 MANAGERIAL ECONOMICS MULTIPLE CHOICE QUESTIONS (25 pts, 1pt each) 1. Movement along a demand curve is indicated by the quantity effect of a change in: A. advertising. B. price of other goods. C. income. > D. price. 2. A decrease in demand is caused by: A. an increase in price. B. a decrease in price. > C. a decrease in advertising. D. an increase in the price of substitutes. 3. A decrease in employer-paid health costs leads to a: > A. shift in supply. B. shift in demand. C. movement along the supply curve. D. movement along the demand curve. 4. A method for predicting buyer response to hypothetical changes in product quality is provided by: A. field studies. B. regression analysis. C. market experiments. > D. consumer surveys. 5. Demand estimation in a controlled environment is possible with: A. field studies. B. regression analysis. > C. market experiments. D. consumer surveys. 6. A relation known with certainty is a: A. statistical relation. B. cross-section relation. > C. deterministic relation. D. time-series relation. 7. A linear model implies: > A. a constant effect of X on Y. B. constant elasticity. C. a log-linear relation. D. a constant effect of Y on X. 8. A multiple regression model necessarily involves: A. a linear relation. > B. more than one X variable. C. a multiplicative relation. D. more than one Y variable.
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2 9. In a simple regression model, the correlation coefficient is: A. equal to one. B. greater than one. C. less than one. > D. the square root of the coefficient of determination. 10. Holding all else equal, the corrected coefficient of determination falls with: A. a decrease in the number of estimated coefficients. B. an increase in sample size. > C. a decrease in R 2 . D. an increase in the standard error of the estimate. 11. A sample of market data taken at a point in time is a: > A. cross-section. B. statistical series. C. time series. D. stratified sample. 12. The standard deviation of the dependent Y variable after controlling for the influence of all X variables is given by: A. R 2 B. ¯ R 2 > C. S.E.E. D. . ˆ Y t 13. A measure of statistical significance for explained variation is given by the: A. t-statistic. > B. F-statistic. C. coefficient of determination. D. corrected coefficient of determination. 14. Multicollinearity is caused by: A. a linear XY relation. B. a log-linear XY relation. > C. high correlation among the X variables. D. high correlation between Y and at least one X variable. 15. Heteroskedasticity is produced by: A. normally distributed residuals. B. randomly distributed residuals. > C. nonconstant variance in the disturbance term. D. autocorrelation. 16. Central tendency is measured by the: > A. mode. B.
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This note was uploaded on 07/31/2011 for the course ECON 1201 taught by Professor Smith during the Spring '11 term at Waseda University.

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