ECO 550 Midterm Exam 4

ECO 550 Midterm Exam 4

1. Economies of Scope
refers to situations where per unit costs are
2. For a short-run cost function which of the following
statements is (are) not true?
3. According to the
theory of cost, specialization in the use of variable resources in the
short-run results initially in:
4. Economies of scale exist whenever long-run average costs:
5. The existence of
diseconomies of scale (size) for the firm is hypothesized to result from:
6. If TC = 321 + 55Q – 5Q2, then average total cost at Q = 10
is:
7. Using demand and supply curves for the Japanese yen based
on the $/Â¥ price for yen, an increase in US INFLATION RATES would
8. An appreciation of the U.S. dollar has what impact on
Harley-Davidson (HD), a U.S. manufacturer of motorcycles?
9. In a recession, the trade balance often improves because
10. The purchasing
power parity hypothesis implies that an increase in inflation in one country
relative to another will over a long period of time
11. Companies that reduce their margins on export products in
the face of appreciation of their home currency may be motivated by a desire to
12. 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
13. Trading partners should specialize in producing goods in
accordance with comparative advantage, then trade and diversify in consumption
because
14. Marginal factor cost is defined as the amount that an
additional unit of the variable input adds to ____.
15. The marginal product is defined as:
16. The isoquants for inputs that are perfect complements for
one another consist of a series of:
17. The primary purpose of the Cobb-Douglas power function is
to:
18. Given a Cobb-Douglas production function estimate of Q =
1.19L.72K.18 for a
given industry, this industry would have:
19. 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:
20. An example of a time series data set is one for which
the:
21. 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
22. For studying demand relationships for a proposed new
product that no one has ever used before, what would be the best method to use?
23. Time-series forecasting models:
24. 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:
25. Consumer expenditure plans is an example of a forecasting
method. Which of the general categories best described this example?
26. Given a Cobb-Douglas production function estimate of Q =
1.19L.72K.18 for a given industry, this industry would have:
27. 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:
28. The primary purpose of the Cobb-Douglas power function is
to:
29. Which of the following statements concerning the long-run
average cost curve of economic theory is true?
30. The cost function is:
31. What method of inventory valuation should be used for
economic decision-making problems?
32. According to the theory of cost, specialization in the
use of variable resources in the short-run results initially in: