2 out of 2 points
High correlation among independent variables (X) leads to:
2 out of 2 points
Statistical analysis of economic rel
1. The primary virtue of managerial economics lies in its:
d. mathematical rigor.
2. Managerial economics cannot be used to identify:
a. how macroeconomic forces affect
PRACTICE EXAM 2
1. The need for a barter system diminishes when money is used as a
A) medium of exchange.
B) store of value.
C) unit of account.
D) measure of value.
2. Tippi received a rebate of $2,000 for a hybrid car she purchased in May 2008. Tippi pu
1. Point elasticity measures elasticity:
a. over a given range of a function.
b. at a spot on a function.
c. over a given range along a function.
d. before non-price effects.
2. Arc elasticity is measured:
CHAPTER 6COST CONCEPTS AND MEASUREMENT
1. The foregone value associated with the current rather than next-best use of a given asset is called:
a. current cost.
b. replacement cost.
c. historical cost.
d. opportunity cost.
2. Sunk co
CHAPTER 5PRODUCTION POLICY
1. The production function Q = 0.25X0.5Y exhibits:
a. constant returns to scale.
b. increasing returns to scale.
c. increasing and then diminishing returns to scale.
d. diminishing returns to scale.
CHAPTER 3MARKET DEMAND AND SUPPLY
1. If demand increases while supply decreases for a particular good:
a. its equilibrium price will increase while the quantity of the good produced and sold could
increase, decrease, or remain constant.
1. In competitive equilibrium, social welfare is Measured by
The sum of net benefits derives by consumers and producers.
2. No externalities exist when:
private cost and benefits eual social cost and benefits.
3. A government policy that addresses market
CHAPTER 2BASICS OF ECONOMIC ANALYSIS
1. An equation is:
a. an analytical expressions of functional relationships.
b. a visual representation of data.
c. a table of electronically stored data.
d. a list of economic data.