Micro
Is the demand for a commodity likely to be more or less elastic the narrower and more specific the definition of the commodity?
More price elastic
What traces a producer's development over the four stages: introduction, growth, maturity, and decline?
Product Life Cycle
What is Marginal Value Product (MVP)?
the value of the product produced by the last added unit of input (MPP times the price of output)
Characterize the shape or slope of the long run aggregate supply curve. (Hint: straight is not the correct answer)
vertical or infinite slope
What is an exogenous variable?
One whose value is determined outside the system. If they state "independent variable,”
What is any depreciation that produces larger deductions for depreciation in the early years of a project's life?
Accelerated depreciation
In world agricultural policy, what is the FAO?
Food and Agriculture Organization of the United Nations
What is ELS cotton?
extra-long staple (or pima) cotton
The relationship between income and consumption is known as _________________________?
Engel's curve or Engel's function
In what type of market does low-quality products predominate because consumers cannot distinguish them from high quality products?
Lemon market
Laws that prevent "unfair" business practices that give rise to monopoly power.
Antitrust laws
In the theory of comparative advantage, a good should be produced in that nation where?
Its cost is least, in terms of alternative goods that might otherwise be produced
If the data are symmetrically distributed about the mean, about what % of the observations are within a half a standard deviation of the mean?
Approximately 33-1/3 percent
What is generally the reason that a farmer would choose to use the cash method over other methods of accounting
Flexibility
What U.S. program is tax-funded and used to pay cleanup costs of abandoned sites that are considered dangerous to health or the environment?
Superfund
How many bushels in a corn-futures contract on the Chicago Board of Trade?
5000
What characterizes a risk lover?
A person will always take a "fair bet" (i.e., one where the expected value of gain equals the expected value of the loss)
What pricing procedure is used by oligopolistic firms to establish product prices by adding a markup to the estimated average cost of production?
Cost plus
What costs are the most important in a management decision?
Those that can be affected or controlled: marginal costs
National income accounting by a circular flow economy would indicate that businesses receive _____ from households in return for _____.
Service of factors of production; Wages, interest, profits, and rents
In regression analysis, how do we refer to a situation where the error term for the model has a constant variance?
Homoscedasticity
What types of assets are used in the business, other than land or permanent attachments to the land?
Business Personal Property
What is the balance of payments?
An accounting of flows of funds to and from a country in a selected period
How many square miles are in 1280 acres?
2
What do we call difficulties involved in managing and coordinating a large business enterprise?
Diseconomies of size
Foreign material found in grain such as dirt, weed seeds or other grains is called?
Dockage
What is the main difference between a financial lease and an operating lease?
Financial is non-cancelable while the operating is cancelable
What are two factors that shift aggregate demand?
Foreign income; Expectations; Exchange rates; Distribution of income; Monetary & fiscal policy
What is generally considered the minimum number of observations to have a "large sample"?
30 obs
Which capital budgeting technique calculates an exact rate of return on the original investment?
Internal rate of return (IRR)
__________ ____________ analysis is the estimation and evaluation of the monetary gains and losses associated with alternatives for achieving defined public goals.
Benefit cost
What country is the second greatest producer of rice in the world?
India
The exercise of monopoly power creates a welfare loss. Under constant returns to scale production technology, decompose this decrease in societal consumer surplus into its two respective parts.
Part of the loss in consumer surplus is associated with the transfer of consumer surplus from the consumer to the monopolist and the other part of lost consumer surplus is simply the deadweight or efficiency loss
What type of pricing strategy is being used when a grocery store offers discounts to senior citizens on Wednesday morning?
Discriminatory pricing in general, or Customer-segment pricing in particular
What does PERT stand for AND describe what its use is?
Program Evaluation and Review Technique - planning and controlling a project with sequenced component activities
What is Walras' Law
The finding that if all but one of the conditions for general market clearing hold, then the final one must hold as well
Where is the inflection point on the classic production function?
The point where the production rate of increase changes from increasing to decreasing, or where MPP is maximized
What is a market in which asset prices instantaneously reflect new information called?
Efficient market
What economist wrote "The Economies of the Coming Spaceship Earth," where he discussed the need to treat the earth as a closed system?
Kenneth Boulding
Cinnamon sticks are made from what part of the cinnamon tree?
bark