Alternative economic models Essay

1. If two alternative economic models are offered, other things equal, we would 2. Time-series forecasting models: 3. Consumer expenditure plans is an example of a forecasting method. Which of the general categories best described this example? 4. An example of a time series data set is one for which the: 5. For studying demand relationships for a proposed new product that no one has ever used before, what would be the best method to use? 6. Which of the following barometric indicators would be the most helpful for forecasting future sales for an industry? 7. If Ben Bernanke, Chair of the Federal Reserve Board, begins to tighten monetary policy by raising US interest rates next year, what is the likely impact on the value of the dollar? 8. An appreciation of the U.S. dollar has what impact on Harley-Davidson (HD), a U.S. manufacturer of motorcycles? 9. The purchasing power parity hypothesis implies that an increase in inflation in one country relative to another will over a long period of time 10. In an open economy with few capital restrictions and substantial import-export trade, a rise in interest rates and a decline in the producer price index of inflation will 11. An increase in the exchange rate of the U.S. dollar relative to a trading partner can result from 12. The optimal currency area involves a trade-off of reducing transaction costs but the inability to use changes in exchange rates to help ailing regions. If the US, Canada, and Mexico had one single currency (the Peso-Dollar) we would tend to see all of the following EXCEPT: 13. Using demand and supply curves for the Japanese yen based on the $/ ¥ price for yen, an increase in US INFLATION RATES would 14. The isoquants for inputs that are perfect complements for one another consist of a series of: 15. The combinations of inputs costing a constant C dollars is called: 16. 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: 17. If the marginal product of labor is 100 and the price of labor is 10, while the marginal product of capital is 200 and the price of capital is $30, then what should the firm? 18. The isoquants for inputs that are perfect  substitutes for one another consist of a series of: 19. Marginal factor cost is defined as the amount that an additional unit of the variable input adds to ____. 20. What method of inventory valuation should be used for economic decision-making problems? 21. The existence of diseconomies of scale (size) for the firm is hypothesized to result from: 22. ____ are defined as costs which are incurred regardless of the alternative action chosen in a decision-making problem. 23. The cost function is: 24. For a short-run cost function which of the following statements is (are) not true? 25. According to the theory of cost, specialization in the use of variable resources in the short-run results initially in: