# Eco 550 Mid-Term Quiz 1 and 2 Essay

3774 WordsAug 26, 201516 Pages
ECO 550 Mid-Term Quiz 1 and 2 Purchase here http://homeworkonestop.com/eco-550-midterm-quiz-1-and-2 Product Description MIDTERM QUIZ 1 This midterm exam consist of 32 multiple choice questions and covers the material in Chapters 1 through 8. There are four questions from each chapter. 1 The flat-screen plasma TVs are selling extremely well. The originators of this technology are earning higher profits. What theory of profit best reflects the performance of the plasma screen makers? 2 To reduce Agency Problems, executive compensation should be designed to: Correct Answer: create incentives so that managers act like owners of the firm. 3 Economic profit is defined as the difference between revenue and ____. 4 Which of the following will increase (V0), the shareholder wealth maximization model of the firm: V0∙(shares outstanding) = Σ∞t=1 (π t ) / (1+ke)t + Real Option Value. 5 A change in the level of an economic activity is desirable and should be undertaken as long as the marginal benefits exceed the ____. 6 The closest example of a risk-free security is 7 The primary difference(s) between the standard deviation and the coefficient of variation as measures of risk are: 8 The ____ is the ratio of ____ to the ____. 9 If demand were inelastic, then we should immediately: 10 Producers' goods are: 11 Marginal revenue (MR) is ____ when total revenue is maximized. 12 Suppose we estimate that the demand elasticity for fine leather jackets is ‑.7 at their current prices. Then we know that: 13 The method which can give some information in estimating demand of a product that hasn’t yet come to market is: 14 The standard deviation of the error terms in an estimated regression equation is known as: 15 All of the following are reasons why an association