12/8/13

Blackboard Learn

Question 1

2 out of 2 points

The level of sales in May, June, July, and August were 84, 92, 83, and 89, respectively.
What is the four­period moving average forecast of sales in September?
Selected Answer:

87

Question 2

0 out of 2 points

If the t ratio for the slope of a simple linear regression equation is equal to 1.614 and the critical values of the t distribution at the 1% and 5% levels of significance, respectively, are
3.499 and 2.365, then the slope is
Selected Answer:

significantly different from zero at the 1% level but not at the 5% level

Question 3

Which of the following is a leading economic indicator?
Selected Answer:

2 out of 2 points

stock prices, 500 common stocks

Question 4

2 out of 2 points

Economies of scope refers to the decrease in average total cost that can occur when a firm
Selected Answer:

produces more than one product

Question 5

0 out of 2 points

The forecast level of sales for the month of May was 240 units. Actual sales in May turned out to be 200 units. Use an exponential smoothing coefficient of 0.8 to forecast sales for
June.
Selected Answer:

230

Question 6

2 out of 2 points

Application of simple linear regression analysis to the estimation of a demand equation has yielded the following:
Q = 24 ­ 2 P
If the current product price is P=$6 and the quantity sold per time period is Q=10, then the error (e) for the current time period is equal to (actual quantity sold ­ estimated quantity sold) Selected Answer:

­2

bb7.liberty.edu/webapps/portal/frameset.jsp?tab_tab_group_id=_2_1&url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D…

1/7

12/8/13

Blackboard Learn

Question 7

2 out of 2 points

One difference between foreign and domestic demand for a commodity exported by the
U.S. is that
Selected
Answer:

foreign demand depends on the exchange rate between domestic and foreign currencies

Question 8

2 out of 2 points

Monica quit her $50,000 per year job, purchased a building that was previously rented by the operator of a candy store for $1,500 per month, and used the space to breed and sell tropical fish. In her first year she made a business profit of $60,000. What was her economic profit?
Selected Answer:

she made an economic loss of $8,000

Question 9

2 out of 2 points

As the economy emerged from the most recent recession, household income rose by 6%.
Over the same period, total expenditures on beef increased by 3%. Assuming that all other economic variables were held constant,
Selected Answer:

beef must be a normal good

Question 10

Which of the following would be referred to as "outsourcing"?
Selected Answer:

Question 11

2 out of 2 points

subcontracting production to firms in other countries

2 out of 2 points

Which of the following is a question that is uniquely relevant to the subject of business ethics? Selected Answer:

Question 12

should a firm buy foreign products that are made using child labor?

2 out of 2 points

Of the following types of costs, which is most likely a fixed cost for a shoe manufacturer?
Selected Answer:

Question 13

an NBA player’s lump­sum royalty payment to endorse the shoe

0 out of 2 points

Mr. D’s Barbeque of Pickwick, TN produces 10,000 dry­rubbed rib slabs per year.
Annually Mr. D’s fixed costs are 50,000. The average variable cost per slab is a constant
$2. The average total cost per slab then is

bb7.liberty.edu/webapps/portal/frameset.jsp?tab_tab_group_id=_2_1&url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D…

2/7

12/8/13

Blackboard Learn

Selected Answer:

5

Question 14

Which of the following is not a qualitative forecasting technique?
Selected Answer:

2 out of 2 points

time­series analysis

Question 15

0 out of 2 points

If the price elasticity of demand for a product is ­5, and the income elasticity of demand for the product is 2.5. If a 0.5% decrease in product price as accompanied by a 1% decrease in consumer income, the firm's total sales will
Selected Answer:

increase

Question 16

0 out of 2 points

Which of the following would most likely make the demand for an item more elastic?
Selected Answer:

buyers perceive there to be few close substitutes for the item

Question 17

2 out of 2 points

The price of a firm's product increases from $5 to $6. As a result, the quantity demanded of the product declines from 600,000 to 500,000. The price elasticity of demand for the good is equal to (Use the arc price elasticity of demand)
Selected Answer:

­1

Question 18

0 out of 2 points

Regression analysis was used to estimate the following seasonal forecasting equation:
St = 124 + 18 D1 ­ 46 D2 ­ 28 D3 + 2.5 T

D1 is a dummy variable that is equal to one in the first quarter and zero otherwise; D2 is a dummy variable that is equal to one in the second quarter and zero otherwise; and D3 is a dummy variable that is equal to one in the third quarter and zero otherwise. Forecast the level of sales in the second quarter of time period ten (T=10).
Selected Answer:

Question 19

171

0 out of 2 points

A computer manufacturer can produce 5 computers for $5,000 and 10 computers for
$7,500. Based on this information, what is the marginal cost per computer of the

bb7.liberty.edu/webapps/portal/frameset.jsp?tab_tab_group_id=_2_1&url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D…

3/7

12/8/13

Blackboard Learn

6th through 10th computer?
Selected Answer:

$750

Question 20

2 out of 2 points

The Country Music Hall of Fame is considering lowering admission prices to increase gross revenue. This plan will work if the price elasticity of demand for tickets is
Selected Answer:

elastic

Question 21

0 out of 2 points

The theory of the firm postulates that the primary objective of managers is to maximize
Selected Answer:

all of the above

Question 22

2 out of 2 points

If three of the eleven leading indicators move up, and the remaining eight are constant, the diffusion index is
Selected Answer:

27.3

Question 23

Which of the following is a business function that is a part of logistics?
Selected Answer:

2 out of 2 points

all of the above

Question 24

2 out of 2 points

Which of the following is not viewed by firms as an advantage of electronic commerce over traditional commerce?
Selected Answer:

consumers have the ability to easily compare product prices

Question 25

2 out of 2 points

A multiple regression analysis based on a data set that consists of 30 observations yielded the following estimated demand equation:
Q = 120 ­ 1.1 P + 0.04 I + 0.90 A where P is price, I is income, and A is advertising. If price is equal to $1,000, income is equal $20,000, and advertising expenditures are equal to $500, then the predicted quantity demanded (Q) is

bb7.liberty.edu/webapps/portal/frameset.jsp?tab_tab_group_id=_2_1&url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D…

4/7

12/8/13

Blackboard Learn

Selected Answer:

270

Question 26

2 out of 2 points

What is the present value of $1.21 received at the end of two years if the interest rate is
10% and compounding is annual?
Selected Answer:

$1.00

Question 27

0 out of 2 points

The price elasticity of demand for a firm's product is equal to ­1.8. The firm currently sells
4,000 units per day at a price of $2. If the firm increases its product price by 10%, then it can expect to sell approximately
Selected Answer:

2,720 units

Question 28

A leading indicator is a measure that usually
Selected
Answer:

2 out of 2 points

changes in the same directin as the general economy before the general economy changes

Question 29

2 out of 2 points

A security system company’s total production costs depend on the number of systems produced according to the following equation,
Total costs = $10,000,000 + $2,000 Q where Q is the quantity produced. What is the average total cost of production when 20,000 uits are produced?
Selected Answer:

$2,500

Question 30

2 out of 2 points

Buyers consider gasoline and SUV to be complements. If gasoline price increases, what would you expect to occur in the SUV market?
Selected Answer:

demand would fall and price of SUV falls

Question 31

Which of the following is an explicit cost to a firm?
Selected Answer:

0 out of 2 points

the cost of the owner’s time

bb7.liberty.edu/webapps/portal/frameset.jsp?tab_tab_group_id=_2_1&url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D…

5/7

12/8/13

Blackboard Learn

Question 32

2 out of 2 points

A country that has an abundance of cheap labor will tend to
Selected Answer:

export goods that are produced using a lot of labor

Question 33

2 out of 2 points

If Sam’s, a local watering hole, increased the price of a pint of Guinness by 20%, it estimates the number of MBA students purchasing Guinness would decrease by 4%.
Based on this data,
Selected Answer:

total revenuees would increase because demand is inelastic

Question 34

2 out of 2 points

Use the information about marginal cost (MC) and marginal revenue (MR) that is presented in the table below to determine the profit maximizing level of output.
Output
1
2
3
4
5
6
7
8
9
MC

10

11

13

16

20

25

31

38

48

MR

50

45

40

35

30

25

20

15

10

Selected Answer:

6

Question 35

2 out of 2 points

A baseketball company is considerign purchasing a new machine that doubles capacity from producing 100 balls to 200 balls per day. The machine will occupy 1,000 square feet of unused space on the facotry floor. Which costs are irrelevant in this decision to purchase a machine?
Selected Answer:

rental expense associated with the 20,000 square feet factory

Question 36

2 out of 2 points

Regression analysis was used to estimate the following linear trend equation:
St = 10.5 + 0.25 t
Use this equation to forecast the value of the dependent variable (St) in time period of 10.
Selected Answer:

13

Question 37

In a free­enterprise system, profit is socially desirable because it
Selected Answer:

2 out of 2 points

attracts resources to the most desirable types of production

bb7.liberty.edu/webapps/portal/frameset.jsp?tab_tab_group_id=_2_1&url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D…

6/7

12/8/13

Blackboard Learn

Question 38

2 out of 2 points

If you are trying to determine the value of a firm, which of the following factors would be relevant? Selected Answer:

all of the above are relevant

Question 39

2 out of 2 points

A firm that has total fixed costs of $40,000 sells its output for $250 per unit and has an average variable cost of $150. If the firm's cost and revenue curves are linear, how much output must the firm produce to break even?
Selected Answer:

400

Question 40

2 out of 2 points

A firm currently produces 2,500 units of output per week. After an additional worker is hired, output rises to 2,620 units per week. If the weekly wage paid to a worker is $480, what is the firm's short­run marginal cost?
Selected Answer:

$4

bb7.liberty.edu/webapps/portal/frameset.jsp?tab_tab_group_id=_2_1&url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D…

7/7