The isoquants for inputs that are perfect complements for one another consist of a series of:

             a.   right angles

             b.   parallel lines

             c.   concentric circles

             d.   right triangles

If the value of the U.S. dollar rises from €1.0 per dollar to €1.3 per dollar,

imports of automobiles from Germany will decline

American inflation will increase

German exports of all traded goods will decline

American exports to Germany will decrease

sales by American manufacturers for the export markets will increase.

The standard deviation of the error terms in an estimated regression equation is known as:

             a.   coefficient of determination

             b.   correlation coefficient

             c.   Durbin-Watson statistic

             d.   standard error of the estimate

In regression analysis, the existence of a high degree of intercorrelation among some or all of the explanatory variables in the regression equation constitutes:

             a.   autocorrelation

             b.   a simultaneous equation relationship

             c.   nonlinearities

             d.   heteroscedasticity

            e.         multicollinearity

All of the following are reasons why an association relationship may not imply a causal relationship except:

             a.   the association may be due to pure chance

             b.   the association may be the result of the influence of a third common factor

             c.   both variables may be the cause and the effect at the same time

             d.   the association may be hypothetical

Consumers will be in equilibrium with respect to the consumption of two goods if:

             a.   the ratio of marginal utility to price is equal for both goods.

             b.   the marginal utility of the lowest price good is greater than the marginal utility of the highest price good.

             c.    the ratio of the marginal utility of A to the marginal utility of B is equal to the ratio of the price of B to the price of A.

             d.  the marginal utility of both goods is identical, regardless of the price.

Empirical estimates of the price elasticity of demand suggest that the demand for household consumption of alcoholic beverages is:

             a.   highly price elastic

             b.   price inelastic

             c.   unitarily elastic

             d.   an inferior good

Iron ore is an example of a:

             a.   durable good

             b.   producers' good

             c.   nondurable good

             d.   consumer good

             e.   none of the above

An increase in each of the following factors would normally provide a subsequent increase in quantity demanded, except:

             a.   price of substitute goods

             b.   level of competitor advertising

             c.   consumer income level

             d.   consumer desires for goods and services

Producers' goods are:

             a.   consumers' goods

             b.   raw materials combined to produce consumer goods

             c.   durable goods used by consumers

             d.   always more expensive when used by corporations

Those goods having a calculated income elasticity that is negative are called:

             a.   producers' goods

             b.   durable goods

             c.   inferior goods

             d.   nondurable goods

In regression analysis, the existence of a significant pattern in successive values of the error term constitutes:

             a.   heteroscedasticity

             b.   autocorrelation

             c.   multicollinearity

             d.   nonlinearities

             e.   a simultaneous equation relationship

Demand functions in the multiplicative form are most common for all of the following reasons except:

             a.   elasticities are constant over a range of data

             b.   ease of estimation

             c.   exponents of parameters are the elasticities of those variables

             d.   marginal impact of a unit change in an individual variable is constant

Time-series forecasting models:

             a.   are useful where changes occur rapidly

             b.   are more effective in making long-run forecasts

             c.   are based solely on historical observations of the values of the variable being forecasted

             d.   attempt to explain the underlying causal relationships which produce the observed outcome

An income elasticity (Ey) of 2.0 indicates that for a _____________ increase in income, ____________ will increase by __________________.

             a.   one percent; quantity supplied; two units

             b.   one unit; quantity supplied; two units

             c.   one percent; quantity demanded; two percent

             d.   one unit; quantity demanded; two units

             e.   ten percent; quantity supplied; two percent

Marginal revenue (MR) is ____________ when total revenue is maximized.

             a.   greater than one

             b.   equal to one

             c.   less than zero

             d.   equal to zero

             e.   equal to minus one

If TC = 321 + 55Q - 5Q2, then average total cost at Q = 10 is:

                        10.2

                        102

                        37.1

                        371

                        321