ECO MCQs and True False Questions

| August 14, 2017

When calculating the arc elasticity of demand, the percentage change in price (quantity) should be based on the average of the starting and ending prices (quantities).Select one:TrueFalseAssume a consumer purchases two goods: X and Y. All else constant, an increase in the price of X would cause the total utility the consumer can obtain with her available income to decrease.TrueFalseThe least squares regression is based on:Select one:a. maximizing the absolute sum of squares errors.b. minimizing the absolute sum of squares errors.c. maximizing the sum of squared errors.d. minimizing the sum of squared errors.The slope of the budget constraint:Select one:a. changes as the marginal rate of substitution changes.b. is the ratio of the prices of the two goods.c. is the ratio of the budget to total utility.d. equals one, since the consumer can purchase any combination along the budget constraint.Conjoint analysis employs an approach to consumer behavior that is similar to the economic indifference curve model.Select one:TrueFalseThe overall predictive power of the estimated regression equation is measured by the F-statistic.Select one:TrueFalse

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