Economies and Balance Midterm Exam Essay

1. Economies of Scope refers to situations where per unit costs are 2. For a short-run cost function which of the following statements is (are) not true? 3. According to the theory of cost, specialization in the use of variable resources in the short-run results initially in: 4. Economies of scale exist whenever long-run average costs: 5. The existence of diseconomies of scale (size) for the firm is hypothesized to result from: 6. If TC = 321 + 55Q – 5Q2, then average total cost at Q = 10 is: 7. Using demand and supply curves for the Japanese yen based on the $/Â ¥ price for yen, an increase in US INFLATION RATES would 8. An appreciation of the U.S. dollar has what impact on Harley-Davidson (HD), a U.S. manufacturer of motorcycles? 9. In a recession, the trade balance often improves because 10. The purchasing power parity hypothesis implies that an increase in inflation in one country relative to another will over a long period of time 11. Companies that reduce their margins on export products in the face of appreciation of their home currency may be motivated by a desire to 12. The import of Apple iPads assembled in Shanghai at a $295 wholesale price ($213 cost and $82 profit margin) adds more than it should to the U.S. trade deficit with China because 13. Trading partners should specialize in producing goods in accordance with comparative advantage, then trade and diversify in consumption because 14. Marginal factor cost is defined as the amount that an additional unit of the variable input adds to ____. 15. The marginal product is defined as: 16. The isoquants for inputs that are perfect complements for one another consist of a series of: 17. The primary purpose of the Cobb-Douglas power function is to: 18. Given a Cobb-Douglas production function estimate of Q = 1.19L.72K.18 for a given industry, this industry would have: 19. 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: 20. An example of a time series data set is one for which the: 21. Smoothing techniques are a form of ____ techniques which assume that there is an underlying pattern to be found in the historical values of a variable that is being forecast 22. For studying demand relationships for a proposed new product that no one has ever used before, what would be the best method to use? 23. Time-series forecasting models: 24. The variation in an economic time-series which is caused by major expansions or contractions usually of greater than a year in duration is known as: 25. Consumer expenditure plans is an example of a forecasting method. Which of the general categories best described this example? 26. Given a Cobb-Douglas production function estimate of Q = 1.19L.72K.18 for a given industry, this industry would have: 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: 28. The primary purpose of the Cobb-Douglas power function is to: 29. Which of the following statements concerning the long-run average cost curve of economic theory is true? 30. The cost function is: 31. What method of inventory valuation should be used for economic decision-making problems? 32. According to the theory of cost, specialization in the use of variable resources in the short-run results initially in: