Micro
What is total variable costs divided by the number of units produced?
Average variable cost
A steel firm uses a river as a receptacle for waste and the waste imposes a cost on a farm downstream, this is an example of a(n) _______________.
externality
What term defines a condition in regression in which the dependent variable has the same variance for all values of the independent variable?
Homoskedasticity or
Homoskedastic
The value added to basic commodities when they are converted into finished products is called ___________.
form utility
Define SWOT
Strengths Weaknesses Opportunities and Threats
For consumer demand equations, what sign is expected for substitutions?
Positive
The value that people place on knowing future generations will have the option to enjoy something is called?
bequest or existence value
The statistical test used in regression analysis to assess the significance of a single parameter estimate is called?
t-test
What traces a products development over the four stages: introduction, growth, maturity, and decline?
What budget estimates the difference between the extra costs and extra returns, income lost and costs saved from a change occurring in an enterprise or the current farm plan?
Partial budget
Which of the following is not a characteristic of perfect competition?
A. Large Number of Buyers and Sellers
B. Barriers to Entry
C. Homogeneous Product
D. Firms are Price Takers
Barriers to entry
______________ is defined as a situation in which the independent pursuit of self-interest by two parties makes both worse off.
Prisoners Dilemma
What error occurs when a false null hypothesis is not rejected?
Type II error
This condition occurs when demand outstrips supply or costs escalate, affecting an upward change in prices.
inflation
An unincorporated business owned by one person is called?
Sole Proprietorship
How do we refer to the area above the supply curve and below price?
Producer surplus
The overuse of a free access resource which may threaten the resource's existence refers to:
Tragedy of the commons
When two or more independent variables in a linear model are highly correlated, the problem is called:
Multicollinearity
A mechanism used to avoid the risk of a decline in the future market of a commodity, usually by entering into futures markets is called ____________.
hedging
What chapter of the Internal Revenue Code deals specifically with farm Bankruptcy?
What represents the different combinations of two products that a business can efficiently produce with its existing resources?
Production possibilities frontier
"As long as negotiation costs are negligible and affected consumers can negotiate freely with each other, the court could allocate the entitlements to either party, and an efficient allocation would result." This statement is attributable to what economist?
Ronald Coase
In statistics, what do we use to represent independent variables that are qualitative or categorical in nature and thus, can only take on a few values of which magnitude has little or no meaning?
dummy variables
The naïve adaptive price expectations model in which suppliers are myopic and always expect price in period t-1 to prevail in period t. This model is called?
cobweb model
What process is defined by making and implementing short-term decisions that keep the firm moving toward its long-term goals?
Tactical Management