If demand is perfectly inelastic, then
Multiple Choice Quizzes with Answer in English (Page: 412)
If the own price elasticity of demand is infinite in absolute value, then
Suppose the own-price elasticity of demand for good X is -0.5, and that the price of goodX increases by 10%. What would you expect to happen to the total expenditures on good X?
Suppose the own-price elasticity of demand for good X is -0.5, and that the price of goodX increases by 10%. We would expect the quantity demanded of good X to ____
If the absolute value of the own price elasticity of demand is greater than one, then demand is said to be
The elasticity of variable G with respect to variable S is defined as
A study has estimated the effect of changes in interest rates and consumer confidence on the demand for money to be: lnM = 14.666 +.021 lnC – 0.036 lnr, where M denotes real money balances, C is an index of consumer confidence, and r is the interest rate paid on bank deposits. Based on this study, a 5% increase in interest rates will cause the demand for money to:
A study has estimated the effect of changes in interest rates and consumer confidence on the demand for money to be: lnM = 14.666 +.021 lnC – 0.036 lnr, where M denotes real money balances, C is an index of consumer confidence, and r is the interest rate paid on bank deposits. Based on this study we know that the interest elasticity is:
As a rule-of-thumb, a parameter estimate is statistically different from zero when the absolute value of the t-statistic is:
Which of the following measures of fit penalizes a researcher for estimating many coefficients with relatively little data?
Which of the following can be used to quantify the overall statistical significance of a regression?
Which of the following provides a measure of the overall fit of a regression?
Which of the following is used to determine the statistical significance of a regression coefficient?
The demand for video recorders has been estimated to be QV = 134 – 1.07PF + 46PM -2.1PV – 5I, where QV is the quantity of video recorders, PF denotes the price of video recorder film, PM is the price of attending a movie, PV is the price of video recorders, and I is income. Based on the estimated demand equation we can conclude:
The statistical analysis of economic phenomenon is defined as:
Suppose the demand function is given by QX d = 8PX 0.5 PY 0.25 M0.12 H. Then the demand for good X is:
Suppose the demand function is given by QX d = 8PX 0.5 PY 0.25 M0.12 H. Then good X is:
Suppose the demand function is given by QX d = 8PX 0.5 PY 0.25 M0.12 H. Then the cross-price elasticity between goods X and Y is:
Suppose the demand for good X is lnQX d = 21 – 0.8 lnPX – 1.6 lnPY + 6.2 lnM + 0.4 lnAX. Then we know that the own-price elasticity for good X is:
Suppose the demand for good X is lnQX d = 21 – 0.8 lnPX – 1.6 lnPY + 6.2 lnM + 0.4 lnAX. Then we know good x is: