Question:

Among the following, which is an assumption of OLS

A.

the explanatory variables are measurable

B.

the relationship being estimated is identified

C.

error term and independent variables are related

D.

error term and independent variables are linearly related

Answer» b. the relationship being estimated is identified

Question:

The transformation of physical inputs in to physical outputs:

A.

production

B.

consumption

C.

distribution

D.

investment

Answer» a. production

Question:

Given the utility function U = 5x²+12x, find Marginal utility:

A.

5+12

B.

10x+12

C.

12x 10

D.

10x +12x

Answer» b. 10x+12

Question:

In an econometric model, Y = ∞ + βX, ∞ shows,

A.

intercept of the equation

B.

slope of the equation

C.

average value of y for average value of x

D.

rate of change

Answer» a. intercept of the equation

Question:

Marginal rate of substitution between factors is equal to the ratio of :

A.

mpx/mpy

B.

mpl/mpk

C.

mrsxy/mrs

D.

none

Answer» b. mpl/mpk

Question:

The percentage change in output caused by a given percentage changein a variable factor is:

A.

output elasticity

B.

income elasticity

C.

price elasticity

D.

none

Answer» a. output elasticity

Question:

The wants satisfying power of a commodity:

A.

consumption

B.

saving

C.

utility

D.

interest

Answer» c. utility

Question:

The difference between total revenue and the total Cost:

A.

cost

B.

income

C.

profit

D.

revenue

Answer» c. profit

Question:

Regressor refers to:

A.

independent variable

B.

dependent variable

C.

error term

D.

dummy variable

Answer» a. independent variable

Question:

Those which meet or satisfy the constraints of the problem:

A.

technical

B.

objective

C.

feasible

D.

optimum

Answer» c. feasible