ECON 301 FINAL - QUIZ QUESTIONS WITH VERIFIED
ANSWERS
A qualitative forecast - Answers - predicts the direction, but not the magnitude, of change in a variable
An isocost line will be shifted farther away from the origin - Answers - if total cost increases
Forecasts are referred to as naive if they - Answers - are based only on past values of the variable.
Four different forecasting methods were applied to a set of time-series data. The root-mean-square
error (RMSE) was calculated for each method. Which of the following four RMSE values would be
associated with the forecasting method that fit the data set best? - Answers - 1.96
Over a period of five years, a firm's sales increased from $1.2 million to $4.7 million. What is the firm's
average annual linear rate of growth? - Answers - $700,000
Refer to the total product (TP) curve graph. At approximately what quantity of labor is the marginal
product of labor equal to the average product of labor? - Answers - 8
Refer to the total product (TP) curve graph. At approximately what quantity of labor is the marginal
product of labor closest to zero? - Answers - 9.5
Refer to the total product (TP) curve graph. At approximately what quantity of labor is the marginal
product of labor closest to its maximum value? - Answers - 5
Refer to the total product (TP) curve graph. At what quantity of labor is the marginal product of labor
increasing? - Answers - 2
Refer to the total product (TP) curve graph. At what quantity of labor is the marginal product of labor
decreasing? - Answers - 8
Refer to the graph of the short-run total cost and total variable cost curves. At what level of output is
marginal cost increasing? - Answers - 8
Refer to the graph of the short-run total cost and total variable cost curves. At what level of output is
marginal cost decreasing? - Answers - 1
Refer to the graph of the short-run total cost and total variable cost curves. At what level of output is
marginal cost equal to average total cost? - Answers - 10
Refer to the graph of the short-run total cost and total variable cost curves. At what level of output is
marginal cost equal to average variable cost? - Answers - 9.5
Refer to the graph of the short-run total cost and total variable cost curves. At approximately what level
of output is marginal cost closest to its minimum value? - Answers - 4
, Regression analysis was used to estimate the following equation from quarterly data:
lnSt = 2.5 + 0.01t
Use this equation to calculate the forecast value of the dependent variable (St) in time period 10 -
Answers - 13.46
Regression analysis was used to estimate the following equation:
St = 10(1.02)t
Use this equation to calculate the forecast value of the dependent variable in time period 4 - Answers -
10.82
Regression analysis was used to estimate the following linear trend equation:
St = 10.5 + 0.25t
Use this equation to forecast the value of the dependent variable in time period 10. - Answers - 13
The law of diminishing returns - Answers - is reflected in the negatively sloped portion of the marginal
product curve.
The marginal product of labor is equal to - Answers - the additional output produced by hiring one more
unit of labor
Turning points in the level of economic activity can be forecast by using - Answers - barometric methods
Which of the following is an example of a capital input? - Answers - hammer
Which of the following is an example of an intermediate product? - Answers - barrel of crude oil
Forecasts of commodity demand may be based on macroeconomic forecasts. - Answers - true
One advantage of the Delphi method is that it avoids a "bandwagon effect" that could lead to incorrect
or biased conclusions. - Answers - true
A multiple regression analysis based on a data set that consists of 30 observations yielded the following
estimated equation:
Q = 120 - 1.1P + 3.7I + 0.90A
where P is price, I is income, and A is advertising. If the coefficient of determination is 0.80, then the
adjusted coefficient of determination is - Answers - .78
A simple linear regression analysis based on a data set that consists of 20 observations yielded the
following estimated equation:
ANSWERS
A qualitative forecast - Answers - predicts the direction, but not the magnitude, of change in a variable
An isocost line will be shifted farther away from the origin - Answers - if total cost increases
Forecasts are referred to as naive if they - Answers - are based only on past values of the variable.
Four different forecasting methods were applied to a set of time-series data. The root-mean-square
error (RMSE) was calculated for each method. Which of the following four RMSE values would be
associated with the forecasting method that fit the data set best? - Answers - 1.96
Over a period of five years, a firm's sales increased from $1.2 million to $4.7 million. What is the firm's
average annual linear rate of growth? - Answers - $700,000
Refer to the total product (TP) curve graph. At approximately what quantity of labor is the marginal
product of labor equal to the average product of labor? - Answers - 8
Refer to the total product (TP) curve graph. At approximately what quantity of labor is the marginal
product of labor closest to zero? - Answers - 9.5
Refer to the total product (TP) curve graph. At approximately what quantity of labor is the marginal
product of labor closest to its maximum value? - Answers - 5
Refer to the total product (TP) curve graph. At what quantity of labor is the marginal product of labor
increasing? - Answers - 2
Refer to the total product (TP) curve graph. At what quantity of labor is the marginal product of labor
decreasing? - Answers - 8
Refer to the graph of the short-run total cost and total variable cost curves. At what level of output is
marginal cost increasing? - Answers - 8
Refer to the graph of the short-run total cost and total variable cost curves. At what level of output is
marginal cost decreasing? - Answers - 1
Refer to the graph of the short-run total cost and total variable cost curves. At what level of output is
marginal cost equal to average total cost? - Answers - 10
Refer to the graph of the short-run total cost and total variable cost curves. At what level of output is
marginal cost equal to average variable cost? - Answers - 9.5
Refer to the graph of the short-run total cost and total variable cost curves. At approximately what level
of output is marginal cost closest to its minimum value? - Answers - 4
, Regression analysis was used to estimate the following equation from quarterly data:
lnSt = 2.5 + 0.01t
Use this equation to calculate the forecast value of the dependent variable (St) in time period 10 -
Answers - 13.46
Regression analysis was used to estimate the following equation:
St = 10(1.02)t
Use this equation to calculate the forecast value of the dependent variable in time period 4 - Answers -
10.82
Regression analysis was used to estimate the following linear trend equation:
St = 10.5 + 0.25t
Use this equation to forecast the value of the dependent variable in time period 10. - Answers - 13
The law of diminishing returns - Answers - is reflected in the negatively sloped portion of the marginal
product curve.
The marginal product of labor is equal to - Answers - the additional output produced by hiring one more
unit of labor
Turning points in the level of economic activity can be forecast by using - Answers - barometric methods
Which of the following is an example of a capital input? - Answers - hammer
Which of the following is an example of an intermediate product? - Answers - barrel of crude oil
Forecasts of commodity demand may be based on macroeconomic forecasts. - Answers - true
One advantage of the Delphi method is that it avoids a "bandwagon effect" that could lead to incorrect
or biased conclusions. - Answers - true
A multiple regression analysis based on a data set that consists of 30 observations yielded the following
estimated equation:
Q = 120 - 1.1P + 3.7I + 0.90A
where P is price, I is income, and A is advertising. If the coefficient of determination is 0.80, then the
adjusted coefficient of determination is - Answers - .78
A simple linear regression analysis based on a data set that consists of 20 observations yielded the
following estimated equation:
