ECON Top Hat Questions - Assignment Essays

Q: A decrease in fixed costs implies that

Neither marginal revenue nor marginal cost will change.

Q: If the sample coefficient of determination (R2) is 0.80, this means that:

80 percent of the variation in the dependent variable is explained by the regression.

Q: Errors in forecasting are caused by all of the following EXCEPT:

using a large sample of past observations for the regression.

ECON Top Hat Questions

0 min read

Posted on

May 24th, 2023

question

An entrepreneur creates a product that costs $25 to make, but no customer is willing to pay more than $15. Was there value created?

answer

Yes

question

A firm lowers its cost of production from $40 per unit to $30 unit, yet continues to sell the good at the same price. Did this move create any more value for the customer?

answer

question

What unique value proposition did Quizno's subs offer when they entered the market? Did this prove to be a sustainable strategy

answer

baked subs, not sustainable

question

If someone buys a product but never actually uses it, is value being created?

answer

Yes

question

When output increases and total profit increases, marginal profit must be:

answer

positive

question

At its current output level, a firm's marginal profit is negative. Therefore, it should:

answer

reduce output bc MR<MC

question

A decrease in fixed costs implies that

answer

Neither marginal revenue nor marginal cost will change.

question

The price elasticity of demand for electricity is

answer

inelastic

question

When the price of smart phones decreases, the demand for data plans will:

answer

increase

question

Is "ladies night" at a bar (where ladies pay no cover) a form of price discrimination?

answer

yes

question

A campus survey asks senior students if they would support a 3-year plan to upgrade the cafeterias at a given cost. What pitfall does this survey exhibit?

answer

Sample bias

question

If all of the price-quantity demanded observations lie exactly on a predicted equation line, the value of the sum of squared errors (SSE) will be:

answer

question

If the sample coefficient of determination (R2) is 0.80, this means that:

answer

80 percent of the variation in the dependent variable is explained by the regression.

question

If the coefficient for a variable is -6.78 and the standard error is 2.20, is the coefficient statistically significant?

answer

yes

question

True or false: a variable representing the age of a person in years is a dummy variable.

answer

false

question

Errors in forecasting are caused by all of the following EXCEPT:

answer

using a large sample of past observations for the regression.

1 of 16

question

An entrepreneur creates a product that costs $25 to make, but no customer is willing to pay more than $15. Was there value created?

answer

Yes

question

A firm lowers its cost of production from $40 per unit to $30 unit, yet continues to sell the good at the same price. Did this move create any more value for the customer?

answer

question

What unique value proposition did Quizno's subs offer when they entered the market? Did this prove to be a sustainable strategy

answer

baked subs, not sustainable

question

If someone buys a product but never actually uses it, is value being created?

answer

Yes

question

When output increases and total profit increases, marginal profit must be:

answer

positive

question

At its current output level, a firm's marginal profit is negative. Therefore, it should:

answer

reduce output bc MR<MC

question

A decrease in fixed costs implies that

answer

Neither marginal revenue nor marginal cost will change.

question

The price elasticity of demand for electricity is

answer

inelastic

question

When the price of smart phones decreases, the demand for data plans will:

answer

increase

question

Is "ladies night" at a bar (where ladies pay no cover) a form of price discrimination?

answer

yes

question

A campus survey asks senior students if they would support a 3-year plan to upgrade the cafeterias at a given cost. What pitfall does this survey exhibit?

answer

Sample bias

question

If all of the price-quantity demanded observations lie exactly on a predicted equation line, the value of the sum of squared errors (SSE) will be:

answer

question

If the sample coefficient of determination (R2) is 0.80, this means that:

answer

80 percent of the variation in the dependent variable is explained by the regression.

question

If the coefficient for a variable is -6.78 and the standard error is 2.20, is the coefficient statistically significant?

answer

yes

question

True or false: a variable representing the age of a person in years is a dummy variable.

answer

false

question

Errors in forecasting are caused by all of the following EXCEPT:

answer

using a large sample of past observations for the regression.

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