# Midterm Exam

In the level of an economic actively Is desirable and should be undertaken as long as the marginal benefits exceed the 2. The level of an economic activity should be increased to the point where the zero. 3.

The is the ratio of to the 4. The standard deviation is appropriate to compare the risk between two investments only if is 5. The approximate probability of a value occurring that Is greater than one standard deviation from the mean Is approximately (assuming a normal distribution) .An closest example of a risk-free security Is 7. In the shareholder wealth minimization model, the value of a firm’s stock is equal to the present value of all expected future discounted at the stockholders’ required rate of return. 8. The form of economics most relevant to managerial decision-making within the firm is: 9. Shirking of one’s duties Is often encountered In team production settings because 10.

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A Real Option Value Is 1 1 . Economic profit is defined as the difference between revenue and 12.The Saturn Corporation (once a division of GM) was permanently closed in 2009. What went wrong with Saturn? 13. An income elasticity (Eye) of 2.

0 indicates that for a increase by increase in income, will 14. An Increase In each of the following factors would normally provide a subsequent increase In quantity demanded, except 15. Which of the following would tend to make demand INELASTIC result in a(n) in total revenues.

17. Songwriters and composers press music companies to lower the price for music downloads because. 8.A price elasticity (DE) of -1. 50 indicates that for a demanded will by increase in price, quantity 19. If demand were inelastic, then we should immediately: 20. The standard deviation of the error terms in an estimated regression equation is known as: 21 .

In testing whether each individual independent variables (Xx) in a multiple regression equation is statistically significant in explaining the dependent variable (Y), one uses the: 22. When two or more “independent” variables are highly correlated, then we have: 3.One commonly used test in checking for the presence of autocorrelation when working with time series data is the 24. Even though insignificant explanatory variables can raise the adjusted RE of a demand function, one should not interpret their effects on the regression when 25. All of the following are reasons why an association relationship may not imply a causal relationship except: Copy this link to your browser and download.