ECO 550 Mid term 1

The moral hazard in team production arises from

Economic profit is defined as the difference between revenue and ____.

To reduce Agency Problems, executive compensation should be designed to:

Shirking of one’s duties is often encountered in team production settings because

The form of economics most relevant to managerial decision-making within the firm is:

The Saturn Corporation (once a division of GM) was permanently closed in 2009.  What went wrong with Saturn?

The ____ is the ratio of ____ to the ____.

The primary difference(s) between the standard deviation and the coefficient of variation as measures of risk are:

Generally, investors expect that projects with high expected net present values also will be projects with

The level of an economic activity should be increased to the point where the ____ is zero.

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

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

When demand elasticity is ____ in absolute value (or ____), an increase in price will result in a(n) ____ in total revenues.

Which of the following would tend to make demand INELASTIC?

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

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

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

Songwriters and composers press music companies to lower the price for music downloads because

The estimated slope coefficient (b) of the regression equation (Ln Y = a + b Ln X) measures the ____ change in Y for a one ____ change in X.

The method which can give some information in estimating demand of a product that hasn’t yet come to market is:

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

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

When two or more "independent" variables are highly correlated, then we have:

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