Managerial Economics Exam 2 (SBU Dr. Wright)

question

A problem with linear trend and constant rate of growth trend forecasting is that they are seasonally this, meaning that variations in sales from month-to-month are not considered in the forecast.

answer

Un-adjusted

question

In the first month observed January 2010, Ford sold 200,000 vehicles. Sales are expected to increase by 4,000 vehicles per month. In a linear trend, how many cars would Ford sell in January 2018?

answer

200,000+4,000(96)=$584,000

question

A simple firm-level forecast can be done by taking total industry sales and multiplying by this.

answer

Market share

question

By taking an average of past observations, these attempt to eliminate the distortions arising from random variation in a data series.

answer

Smoothing Effect

question

Eight factors that can effect a firm-level forecast were discussed in class.

answer

Prices
Advertising
Rival responses
GDP
Interest rates
Inflation rates
Exchange rates
Unemployment rate

question

A cost incurred regardless of the alternative action chosen in a decision-making problem.

answer

Sunk cost

question

This country's economy grew by 10-15% annually from 2000-2010 and by 7-9% annually since then.

answer

China

question

This percentage of U.S. corporate profits come from overseas operations.

answer

33.3% or 1/3

question

Richards Brothers, Inc. purchased a new piece of equipment in 2017 for $100,000. The company's accountants are taking a straight line depreciation deduction over the 10-year life span of the equipment. Currently, the equipment can be sold on the open market for $82,000. For purposes of calculating 2018 economic profit, this is the depreciation deduction.

answer

100,000-82,000=$18,000

question

The three types of foreign exchange risk that exist.

answer

Transaction risk
Translation risk
Operating risk

question

In 2002, this foam clog company forecast double-digit sales growth for the next five years, but did not accurately account for future macroeconomic conditions that caused demand to decline.

answer

Crocs

question

Total Costs = Total Fixed Costs + These

answer

Total variable cost

question

A measure of how closely production achieves the least-cost input mix or process, given the desired level of output.

answer

Alocative efficiency

question

This type of forecasting technique weights recent observations more heavily, eliminating a criticism of the moving average.

answer

Exponential smoothing

question

Two reasons why this exists are that there are a limited number of ways to achieve greater labor specialization and crowding effects related to adding additional workers.

answer

The law of diminishing marginal returns

question

Inputs can be either variable or this, one whose quantity employed does not change depending on the desired quantity of output to be produced.

answer

Fixed

question

The three types of returns that can be illustrated from product curves.

answer

Increasing
Decreasing
Negative

question

A mathematical model, a spreadsheet, or a graph that relates the maximum feasible quantity of output that can be produced from given amounts of various inputs.

answer

Production function

question

In this time period all the resources employed in the production process can be varied.

answer

Long-run

question

The optimal use of a variable input will occur where marginal revenue product equals this three-word term.

answer

Marginal factor cost

question

Change in total output obtained from one additional unit of variable input being employed.

answer

Marginal product

question

A variable that takes on a value of either 0 or 1 and which is used to capture the impact of certain qualitative factors in an econometric relationship.

answer

Dummy variable

question

A sequence of values of an economic variable at different points in time.

answer

Time series

question

The three classifications of barometric indicators, depending on their timing relative to business cycle peaks and troughs.

answer

Leading
Lagging
Coincident

question

The four components of a time series.

answer

Seasonal
Secular
Random
Cyclical

question

Economic costs include these, the value of a resource in its next-best alternative use.

answer

Opportunity cost

question

A measure of how closely production achieves maximum potential output given the input mix or process.

answer

Technical efficiency

question

The greater the installed base of certain products such as Facebook or LinkedIn, the larger the number of compatible connections and therefore the more possible value for a new customer, illustrating this exception to the law of diminishing marginal returns.

answer

Network effect

question

Exports were this percent of GDP as of 2012.

answer

17%-18%

question

Five factors effecting the choice of a forecasting technique were discussed.

answer

Cost
Complex relationships
Long-term or short-term
Time
Accuracy

question

The rate at which one input may be substituted for another input in producing a given quantity of output.

answer

Marginal of technical substitution (MTS)

1 of 31

question

A problem with linear trend and constant rate of growth trend forecasting is that they are seasonally this, meaning that variations in sales from month-to-month are not considered in the forecast.

answer

Un-adjusted

question

In the first month observed January 2010, Ford sold 200,000 vehicles. Sales are expected to increase by 4,000 vehicles per month. In a linear trend, how many cars would Ford sell in January 2018?

answer

200,000+4,000(96)=$584,000

question

A simple firm-level forecast can be done by taking total industry sales and multiplying by this.

answer

Market share

question

By taking an average of past observations, these attempt to eliminate the distortions arising from random variation in a data series.

answer

Smoothing Effect

question

Eight factors that can effect a firm-level forecast were discussed in class.

answer

Prices
Advertising
Rival responses
GDP
Interest rates
Inflation rates
Exchange rates
Unemployment rate

question

A cost incurred regardless of the alternative action chosen in a decision-making problem.

answer

Sunk cost

question

This country's economy grew by 10-15% annually from 2000-2010 and by 7-9% annually since then.

answer

China

question

This percentage of U.S. corporate profits come from overseas operations.

answer

33.3% or 1/3

question

answer

100,000-82,000=$18,000

question

The three types of foreign exchange risk that exist.

answer

Transaction risk
Translation risk
Operating risk

question

In 2002, this foam clog company forecast double-digit sales growth for the next five years, but did not accurately account for future macroeconomic conditions that caused demand to decline.

answer

Crocs

question

Total Costs = Total Fixed Costs + These

answer

Total variable cost

question

A measure of how closely production achieves the least-cost input mix or process, given the desired level of output.

answer

Alocative efficiency

question

This type of forecasting technique weights recent observations more heavily, eliminating a criticism of the moving average.

answer

Exponential smoothing

question

Two reasons why this exists are that there are a limited number of ways to achieve greater labor specialization and crowding effects related to adding additional workers.

answer

The law of diminishing marginal returns

question

Inputs can be either variable or this, one whose quantity employed does not change depending on the desired quantity of output to be produced.

answer

Fixed

question

The three types of returns that can be illustrated from product curves.

answer

Increasing
Decreasing
Negative

question

A mathematical model, a spreadsheet, or a graph that relates the maximum feasible quantity of output that can be produced from given amounts of various inputs.

answer

Production function

question

In this time period all the resources employed in the production process can be varied.

answer

Long-run

question

The optimal use of a variable input will occur where marginal revenue product equals this three-word term.

answer

Marginal factor cost

question

Change in total output obtained from one additional unit of variable input being employed.

answer

Marginal product

question

A variable that takes on a value of either 0 or 1 and which is used to capture the impact of certain qualitative factors in an econometric relationship.

answer

Dummy variable

question

A sequence of values of an economic variable at different points in time.

answer

Time series

question

The three classifications of barometric indicators, depending on their timing relative to business cycle peaks and troughs.

answer

Leading
Lagging
Coincident

question

The four components of a time series.

answer

Seasonal
Secular
Random
Cyclical

question

Economic costs include these, the value of a resource in its next-best alternative use.

answer

Opportunity cost

question

A measure of how closely production achieves maximum potential output given the input mix or process.

answer

Technical efficiency

question

answer

Network effect

question

Exports were this percent of GDP as of 2012.

answer

17%-18%

question

Five factors effecting the choice of a forecasting technique were discussed.

answer

Cost
Complex relationships
Long-term or short-term
Time
Accuracy

question

The rate at which one input may be substituted for another input in producing a given quantity of output.

answer

Marginal of technical substitution (MTS)

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Managerial Economics Exam 2 (SBU Dr. Wright)

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