ECO 550 Mid term 2

Question 1

Which of the following barometric indicators would be the most helpful for forecasting future sales for an industry?

The use of quarterly data to develop the forecasting model Y_t = a +bY_t−1 is an example of which forecasting technique?

An example of a time series data set is one for which the:

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:

The type of economic indicator that can best be used for business forecasting is the:

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:

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?

In a recession, the trade balance often improves because

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

The optimal currency area involves a trade-off of reducing transaction costs but the inability to use changes in exchange rates to help ailing regions.  If the US, Canada, and Mexico had one single currency (the Peso-Dollar) we would tend to see all of the following EXCEPT:

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

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

The purchasing power parity hypothesis implies that an increase in inflation in one country relative to another will over a long period of time

Marginal revenue product is defined as the amount that an additional unit of the variable input adds to ____.

Which of the following is never negative?

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

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

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?

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:

Economies of scale exist whenever long-run average costs:

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

____ are defined as costs which are incurred regardless of the alternative action chosen in a decision-making problem.

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

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

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