ECO 550 Midterm Exam

ECO 550 Midterm Exam

1.The variation in an economic time-series which is caused by major expansions or contractions usually of greater than a year in duration is known as:

2. Time-series forecasting models:

3. If two alternative economic models are offered, other things equal, we would

4. Smoothing techniques are a form of ____ techniques which assume that there is an underlying pattern to be found in the historical values of a variable that is being forecast.

5. The forecasting technique which attempts to forecast short-run changes and makes use of economic indicators known as leading, coincident or lagging indicators is known as:

6. For studying demand relationships for a proposed new product that no one has ever used before, what would be the best method to use?

7. If Ben Bernanke, Chair of the Federal Reserve Board, begins to tighten monetary policy by raising US interest rates next year, what is the likely impact on the value of the dollar?

8. Companies that reduce their margins on export products in the face of appreciation of their home currency may be motivated by a desire to

9. An increase in the exchange rate of the U.S. dollar relative to a trading partner can result from

10. Trading partners should specialize in producing goods in accordance with comparative advantage, then trade and diversify in consumption because

11. An appreciation of the U.S. dollar has what impact on Harley-Davidson (HD), a U.S. manufacturer of motorcycles?

12. If the British pound (?) appreciates by 10% against the dollar:

13. The import of Apple iPads assembled in Shanghai at a $295 wholesale price ($213 cost and $82 profit margin) adds more than it should to the U.S. trade deficit with China because

14. If the marginal product of labor is 100 and the price of labor is 10, while the marginal product of capital is 200 and the price of capital is $30, then what should the firm?

15. In a production process, an excessive amount of the variable input relative to the fixed input is being used to produce the desired output. This statement is true for:

16. Which of the following is never negative?

17. The combinations of inputs costing a constant C dollars is called:

18. The marginal rate of technical substitution may be defined as all of the following except:

19. In a relationship among total, average and marginal products, where TP is maximized:

20. Economies of Scope refers to situations where per unit costs are:

21. Economies of scale exist whenever long-run average costs:

22. What method of inventory valuation should be used for economic decision-making problems?

23. For a short-run cost function which of the following statements is (are) not true?

24. The cost function is:

25. According to the theory of cost, specialization in the use of variable resources in the short-run results initially in: