Micro
What happens to output when a firm moves along an isoquant, substituting capital for labor?
Output remains unchanged
An estimation described as BLUE means it is the _____.
Best Linear Unbiased Estimator
What is the most important motive for holding money?
The transaction motive.
The theory that households respond to budget deficits by increasing their present saving in anticipation of higher future taxes is known as the?
Ricardian Equivalence Theorem
What is a monetary debt owed by a firm or an individual?
Liabibility
An individual who makes decisions among environmental programs strictly on the basis of expected values is described as _____.
Risk neutral
What is the name of the action taken by a manager to give employees expanded authority to solve problems as they arise?
Empowerment
Extensive form is another name for what graphical representation in game theory?
a game tree
Other than continuous what form can statistical data take?
Discrete
How would a Keynesian economist recommend dealing with high unemployment?
Increased government spending and/or reduced taxation
How does the banking system increase the money supply?
Creates checkable deposits
Name the two basic discounted cash flow methods that provide information for capital budgeting decisions.
Net Present Value (NPV) and Internal Rate of Return (IRR).
What type of analysis involves a direct comparison of the trade-offs between environmental risk and dollar benefits?
Risk-Benefit
What value includes cash receipts from sale of farm products, value of food and fuel produced and consumed on farms, and the rental value of farm dwellings?
Gross (farm) income
How are individual demand curves for a commodity summed to derive the market demand curve?
Horizontally
What does 1 minus the confidence level equal?
Level of significance
How do currency speculators aid international trade?
They absorb the exchange rate risk that others do not want to bear
What type of income tax would help stabilize a cyclical economy?
Graduated (income tax)
How do you calculate the adjusted basis of an asset for tax purposes?
The cost basis less (-) depreciation
The Herfindahl index is a summary measure of industry concentration. What is the upper bound of the Herfindahl index?
1
What type of management technique is concerned with reducing inventory levels and delivering raw materials just when they are needed for production?
Just-in-time
The idea that supply creates its own demand is known as?
Say's Law
What is the most widely used algebraic procedure for solving LP problems?
Simplex method
What two indicators are associated with stagflation?
high inflation and high unemployment
It may be misleading to label a trade deficit as "unfavorable" or "adverse" because?
American consumers benefit from a trade deficit during the period it occurs
What type of analysis involves a direct comparison of the trade-offs between environmental risk and dollar benefits?
What types of values do not depend on human use of natural resources?
Passive use values or Existence values
What exists when a single firm can produce both goods A and B for less than two firms can produce A and B separately?
Economies of scope
What is the shape of the long-run supply curve for a constant-cost industry, or an industry that can expand without causing an increase in input prices?
horizontal or flat
In regression analysis, the sum of the residuals should equal to ____________?
Zero
According to the Keynesian economic model, a depression is caused by _____.
Insufficient aggregate expenditures or demand
What do we call a clause in a wage contract that raises wages in times of inflation
COLA (cost of living adjustment)
Given a depreciable investment of $100,000, a economic life of 10 years, and a salvage value of $20,000, what is the 150% declining balance method depreciation in year one?
$15,000
Subsidies on a good or service based on the reduction of environmental impact
Green subsidies
Under Michael Porter's Five Forces model __________ rivalry describes the competition for market share by incumbent firms within a market
Internal