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 ____
Subject: Economics Multiple Choice Quiz ( MCQ ) and Answer
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:
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 goods x and y are:
You are the manager of a popular shoe company. You know that the advertising elasticity of demand for your product is 0.15. How much will you have to increase advertising in order to increase demand by 10%?
Suppose demand is given by QX d = 50 – 4PX + 6PY + AX , where PX = $4, PY = $2, and AX = $50. What is the quantity demanded of good X?
Suppose demand is given by QX d = 50 – 4PX + 6PY + AX, where PX = $4, PY = $2, and AX = $50. What is the advertising elasticity of demand for good X?
You are the manager of a supermarket and know that the income elasticity of peanut butter is exactly -0.7. Due to the recession, you expect incomes to drop by 15% next year. How should you adjust your purchase of peanut butter?