While you were an intern you bought 5 packages of hot dogs a month. After acquiring a full-time job ...

While you were an intern you bought 5 packages of hot dogs a month. After acquiring a full-time job with a considerable higher salary, you stopped purchasing hot dogs. For you, hot dogs are
 a. Complementary good
  b. Normal good
  c. Inferior good
  d. Substitute good

QUESTION 2

Appendix: When two or more independent variables are highly correlated, then we have:
 a. the identification problem
  b. multicollinearity
  c. autocorrelation
  d. heteroscedasticity
  e. complementary products

QUESTION 3

When a transfer price decreases
 a. the costs of the division using the intermediate product will fall
 b. the profits of the division using the intermediate product will be unaffected
  c. the profits of the division using the intermediate product will fall
 d. the profits of the division using the intermediate product will rise

QUESTION 4

You lose your job and as a result your demand for steak falls. This implies that you consider steaks to be a
 a. Complementary good
  b. Normal good
  c. Inferior good
  d. Substitute good

QUESTION 5

When there is multicollinearity in an estimated regression equation,
 a. the coefficients are likely to be small.
  b. the t-statistics are likely to be small even though the R2 is large.
  c. the coefficient of determination is likely to be small.
  d. the problem of omitted variables is likely.
  e. the error terms will tend to have a cyclical pattern.

QUESTION 6

When a transfer price increases
 a. the profits of the division using the intermediate product will rise
 b. the profits of the division using the intermediate product will be unaffected
  c. the profits of the division using the intermediate product will fall
 d. the costs of the division using the intermediate product will fall

QUESTION 7

Based on the answer above, the price for bus rides _____________ and the quantity demanded for rides ____________.
 a. Decreases; decreases
  b. Decreases; increases
  c. Decreases; uncertain
  d. Increases; uncertain

QUESTION 8

In which of the following econometric problems do we find Durbin-Watson statistic being far away from 2.0?
 a. the identification problem
  b. autocorrelation
  c. multicollinearity
  d. heteroscedasticity
  e. agency problems