Micro
Which of a firm's costs are the same regardless of its output rate?
fixed costs
How are futures prices established?
Open outcry of bids and offers
A farmer pays $25 per acre-foot for irrigation water. At profit maximizing equilibrium, what is the marginal value product of water?
25
The acronym IMF stands for?
International monetary fund
An equation that can be plotted as a straight line is called:
linear
What utility is created by firms that store products for future use?
Time
What is the economic term for a situation where all the costs and benefits are not reflected in the price?
Market failure
What U.S. president was born in Kentucky?
Abraham Lincoln
If a firm doubles its inputs and its output more than doubles as a result, the firm has what kind of returns to scale?
increasing
Any market that has a separate Demand Curve and a separate Marginal Revenue Curve is an example of _____ competition.
Imperfect
What risk management tool transfers risk to a third party for the payment of a specified fee?
insurance
What is measured on the horizontal axis of the IS-LM diagram?
National income (Y)
What is the term for an indicator created as the percentage of the average value of a set of related items at some base period ?
Index number
A commitment by a lender to make a certain sum of money available to a firm at whatever time the firm needs the funds is typically called:
A line of credit
The situation in which demand exceeds supply at a price of zero.
scarcity
What nutrient is represented by the first number in fertilizer (e.g., 10-20-10)
Nitrogen
Why is the production possibilities curve of two goods usually drawn concave from the origin?
Not all resources can be used equally efficiently in the production of each good
What term used in retailing refers to the theft of merchandise by customers and employees?
shrinkage
A mixture of vertical integration and market exchange, say owning some retail outlets and franchising others, is called?
Tapered integration
The extra amount that people consume when they receive an extra dollar of income.
Marginal propensity to consume
The difference between a normal distribution and a standard normal distribution is that:
The standard normal has a mean of zero and a standard deviation of one
What is the difference in value between current assets and current liabilities (hint: a measure of liquidity)?
Working capital
Consumers' willingness to pay for the opportunity to use some natural resource in the future, even if they do not use it now is callled the ________ ________ .
option value
Kentucky produces about what percent of the world’s bourbon?
95%
A price ________ will cause quantity demanded to exceed quantity supplied.
ceiling
The lobbying of government for preferential access to particular markets or tax advantages is referred to as what type of activity?
Rent-seeking
Which form of depreciation is almost always incurable?
External (not physical or functional)
What do usury laws establish?
A legal ceiling on interest rates
What common statistical method tests for autocorrelation?
Durbin-Watson test
How does marketing differ from selling?
Marketing involves market analysis before the production and selling begins
What phrase is often used to refer to situations that involve a conflict for resources between individual interests and the common good, such as overfishing in the oceans?
tragedy of the commons
What is the term for a castrated male pig
Barrow
In equilibrium, how will consumers allocate their resources between inputs?
They will allocate them such that the marginal product per dollar spent on each resource is equal
A crack spread is a commodity-product spread involving futures contracts of what three commodities?
crude oil, gasoline, and heating oil
What is the most appropriate situation to use the cost approach for appraising the value of a barn?
When the barn is new (or close to it)
Featherbedding refers to what?
The requirement that unneeded workers be retained on a job
When observations are not symmetrically distributed around the mean, the problem is commonly called:
skewness
Assuming an interest rate of 10 percent, what is the approximate net present value of a $100 payment to be received in one year?
About (just under) $91 [(100/1.10) = $90.91]
If the CPI in the base year is 100 and the CPI in the current year is 433, how much have prices risen between the years?
333 percent
Mammoth Cave in Kentucky is the _____ cave system in the world.
Longest