Course Managerial Economics & GlobaliTest Midterm Exam • Question 1 Possible goals of Not-For-Profit (NFP) enterprises include all of the following EXCEPT:• Question 2 The primary objective of a for-profit firm is to ___________. • Question 3 Income tax payments are an example of ____. • Question 4 Economic profit is defined as the difference between revenue and ____. • Question 5 A change in the level of an economic activity is desirable and should be undertaken as long as the marginal benefits exceed the ____. • Question 6 The standard deviation is appropriate to compare the risk between two investments only if • Question 7 The level of an economic activity should be increased to the point where the ____ is zero. • Question 8 The net present value of an investment represents • Question 9 An income elasticity (Ey) of 2.0 indicates that for a ____ increase in income, ____ will increase by ____. • Question 10 A price elasticity (ED) of ?1.50 indicates that for a ____ increase in price, quantity demanded will ____ by ____. • Question 11 Marginal revenue (MR) is ____ when total revenue is maximized. • Question 12 An increase in each of the following factors would normally provide a subsequent increase in quantity demanded, except: • Question 13 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. • Question 14 The method which can give some information in estimating demand of a product that hasn’t yet come to market is:• Question 15 When two or more “independent” variables are highly correlated, then we have:• Question 16 One commonly used test in checking for the presence of autocorrelation when working with time series data is the ____. • Question 17 Consumer expenditure plans is an example of a forecasting method. Which of the general categories best described this example?• Question 18 Time-series forecasting models: • Question 19 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: • Question 20 Which of the following barometric indicators would be the most helpful for forecasting future sales for an industry? • Question 21 The purchasing power parity hypothesis implies that an increase in inflation in one country relative to another will over a long period of time • Question 22 If the British pound (?) appreciates by 10% against the dollar: • Question 23 Companies that reduce their margins on export products in the face of appreciation of their home currency may be motivated by a desire to • Question 24 Using demand and supply curves for the Japanese yen based on the $/Â¥ price for yen, an increase in US INFLATION RATES would • Question 25 Marginal factor cost is defined as the amount that an additional unit of the variable input adds to ____. • Question 26 Given a Cobb-Douglas production function estimate of Q = 1.19L.72K.18 for a given industry, this industry would have: • Question 27 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: • Question 28 The primary purpose of the Cobb-Douglas power function is to: • Question 29 Which of the following statements concerning the long-run average cost curve of economic theory is true? • Question 30 The cost function is: • Question 31 What method of inventory valuation should be used for economic decision-making problems? • Question 32 According to the theory of cost, specialization in the use of variable resources in the short-run results initially in: