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29.A measure of inflation that washes out price extremes employs:

A.mean price changes.

B.Weighted average price changes.

C.the standard deviation of price changes.

D.median price changes.

Ans: D

Explanation:

30.A multiple regression model involves two or more:

A.Y variables..

B.X variables.

C.intercept terms.

D.data points.

Ans: B

Explanation:

31,High correlation among X variables leads to:

A.multi co-linearity.

B.high R square.

C.low R squared.

D.high t statistics.

Ans: A

Explanation:

Multicollinearity occurs when independent variables in a regression model are correlated. This correlation is a problem because independent variables should be independent. If the degree of correlation between variables is high enough, it can cause problems when you fit the model and interpret the results.

32.The "middle" observation is the:

A.median.

B.average.

C.mean.

D.mode.

Ans: A

Explanation:

33.A relation known with certainty is called a:

A.statistical relation.

B.multiple regression.

C.deterministic relation.

D.simple regression.

Ans: C

Explanation:

34.Statistical analysis of economic relations focuses on the estimation and interpretation of:

A.sample statistics.

B.population parameters.

C.summary measures.

D.descriptive measures.

Ans: A

Explanation:

35.Central tendency is measured by the:

A.range.

B.variance.

C.standard deviation.

D.mode.

Ans: D

Explanation:

36.In a uniform distribution, the mode:

A.equals the median.

B.is less than the mean.

C.is less than the median.

D.is greater than the mean.

Ans: A

Explanation:

37.If a distribution is skewed upward, the median:

A.is greater than the mean.

B.is less than the mean.

C.is greater than the average.

D.the mean.

Ans: B

Explanation:

38.Incorrect rejection of the hypothesis is called:

A.type I error.

B.type II error.

C.z statistical error.

D.t statistical error.

Ans: A

Explanation: This "false positive," leading to an incorrect rejection of the null hypothesis, is called a type I error.

39.A relation known with certainty is a:

A.cross-section relation,

B.deterministic relation.

C.time-series relation.

D.statistical relation.

Ans: B

Explanation:

40.If demand increases while supply decreases for a particular good:

A.the equilibrium price will increase while the quantity of the good produced and sold could increase,

decrease, or remain constant.

B.the quantity of the good produced and sold will decrease while its equilibrium price could increase,

decrease, or remain constant.

C.the quantity of the good produced and sold will increase while its equilibrium price could increase,

decrease.or remain constant.

D.its equilibrium price will decrease while the quantity of the good produced and sold could increase,

decrease, or remain constant.

Ans: A

Explanation:

41.Shortage is a condition of:

A.excess supply.

B.excess demand.

C.a deficiency in demand.

D.market equilibrium.

Ans: B

Explanation:

Shortage is astate or situation wheresomething needed cannot be obtained in sufficient amounts. An excess in demand, excess meaning an amount of something that is more than necessary, permitted, or desirable, would result in too much being asked for(demanded) and resulting in not enough (or shortage) of supply.

42.Derived demand is directly determined by:

A.utility.

B.the profitability of using inputs to produce the given output.

C.the ability to create and then satisfy consumer desires.

D.personal consumption.

Ans: D

Explanation:

43.A demand curve expresses the relation between the quantity demanded and:

A.income.

B.advertising.

C.price.

D.all of the above.

Ans: C

Explanation:

44.Change in the quantity demanded is:

A.a movement along a single demand curve,

B.an upward shift from one demand curve to another.

C.a reflection of change in one or more of the non-price variables in the product demand function.

D.a downward shift from one demand curve to another.

Ans: A

Explanation:

45.A supply curve expresses the relation between the quantity supplied and:

A.technology.

B.wage rates.

C.price.

D.all of the above.

Ans: C

Explanation:

46.Change in the quantity supplied reflects a:

A.change in price.

B.switch from one supply curve to another.

C.change in one or more non-price variables.

D.shift in supply.

Ans: A

Explanation:

47.Demand for consumption goods and services is:

A.derived demand.

B.direct demand.

C.product demand.

D.utility.

Ans: B

Explanation:

48.Derived demand is the:

A.demand for inputs used in the production of the good sold.

B.demand for products other than raw materials.

C.first derivative of the demand function.

D.demand for consumption products.

Ans: A

Explanation:

49.If the production of two goods is complementary a decrease in the price of one will:

A.increase supply of the other.

B.increase the quantity supplied of the other.

C.decrease the price of the other.

D.decrease supply of the other.

Ans: A

Explanation: