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ECO550 Week 5 Mid Term Part 1 2017
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Question

Question 1

4 out of 4 points

Which of the following will increase (V0), the shareholder wealth maximization model of the firm: V0?(shares outstanding) = ??t=1 (? t ) / (1+ke)t + Real Option Value.

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Question 2

4 out of 4 points

The moral hazard in team production arises from

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Question 3

4 out of 4 points

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

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Question 4

4 out of 4 points

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

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Question 5

4 out of 4 points

Possible goals of Not-For-Profit (NFP) enterprises include all of the following EXCEPT:

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Question 6

4 out of 4 points

Recently, the American Medical Association changed its recommendations on the frequency of pap-smear exams for women. The new frequency recommendation was designed to address the family histories of the patients. The optimal frequency should be where the marginal benefit of an additional pap-test:

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Question 7

0 out of 4 points

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

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Question 8

4 out of 4 points

The standard deviation is appropriate to compare the risk between two investments only if

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Question 9

4 out of 4 points

The approximate probability of a value occurring that is greater than one standard deviation from the mean is approximately (assuming a normal distribution)

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Question 10

4 out of 4 points

An closest example of a risk-free security is

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Question 11

4 out of 4 points

Based on risk-return tradeoffs observable in the financial marketplace, which of the following securities would you expect to offer higher expected returns than corporate bonds?

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Question 12

4 out of 4 points

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

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Question 13

4 out of 4 points

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

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Question 14

4 out of 4 points

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

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Question 15

4 out of 4 points

Auto dealers slash prices at the end of the model year in response to deficient demand/excess inventory but restaurants facing the same problem slash production because

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Question 16

4 out of 4 points

Suppose we estimate that the demand elasticity for fine leather jackets is .7 at their current prices. Then we know that:

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Question 17

4 out of 4 points

Which of the following would tend to make demand INELASTIC?

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Question 18

4 out of 4 points

A price elasticity (ED) of ?1.50 indicates that for a ____ increase in price, quantity demanded will ____ by ____.

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Question 19

4 out of 4 points

The factor(s) which cause(s) a movement along the demand curve include(s):

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Question 20

4 out of 4 points

In testing whether each individual independent variables (Xs) in a multiple regression equation is statistically significant in explaining the dependent variable (Y), one uses the:

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Question 21

0 out of 4 points

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

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Question 22

4 out of 4 points

When using a multiplicative power function (Y = a X1b1 X2b2 X3b3) to represent an economic relationship, estimates of the parameters (a, and the b's) using linear regression analysis can be obtained by first applying a ____ transformation to convert the function to a linear relationship.

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Question 23

4 out of 4 points

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

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Question 24

4 out of 4 points

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.

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Question 25

0 out of 4 points

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

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