Question;1. For a linear (inverse) demand function, increases in output will;cause total revenue to increase when marginal revenue is;a. Positive;b. Negative;c. Unit;Elastic;d. Elastic;2.;Competitive market equilibrium is;determined by;a.;Only the most influential buyers;and sellers;b.;Only the demand curve;c.;Only the supply curve;d.;The intersection of the demand;and supply curves;3.;As a rule of thumb, a parameter;estimate is statistically different from zero when the absolute value of the;t-statistic is;a.;Zero;b.;Less than one;c.;Greater than or equal to 1;d.;Greater than or equal to 2;4.;Incentive plans mean that;a.;Managers are paid the same amount;regardless of how much effort they put forth;b.;Mangers are paid less (more) if;they put forth less (more) effort;c.;Managers have the interests of;the owner in mind regardless of how they are paid;d.;Managers need to be monitored;constantly;5.;When the growth rate is less than;the interest rate;a.;Maximizing the present value of;all future profits is the same as maximizing current profits;b.;Maximizing the present value of;all future profits is greater than maximizing current profits.;c.;Current profits equal the sum of;future profits.;d.;None of the above statements are;correct.;6.;Suppose the demand for good X is;given by Qxd= 10 - 2Px+ Py+ M. The price of good X is $1, the price of good Y is $10, and;income is $200. Given these prices and income, how much of good X will be;purchased?;a.;1;b.;210;c.;218;d.;None of the statements associated;with this question are correct.;7.;If the income elasticity for;lobster is 0.5, a 20 percent increase in income will lead to a;a.;10 percent increase in demand for;lobster.;b.;10 percent decrease in demand for;lobster.;c.;20 percent increase in demand for;lobster.;d.;20 percent decrease in demand for;lobster.;8.;Other things held constant;consumer surplus decreases as;a.;The price of a good decreases.;b.;The price of a good increases.;c.;The supply curve shifts to the;right.;d.;None of the above.
Paper#55547 | Written in 18-Jul-2015Price : $22