Based on annual data from 2000-2010, the Gadget Company estimates that sales are growing according to a linear trend:
Q = 50,000 + 200t
where t is time and t = 0 in 2000.
a. Forecast sales for 2013.
b. Do you see any problems with this forecasting method?
a. 52,600
b. The equation is based on data from 2000-2010. The further away from the final year, the less likely the equation is to be correct, as more factors may alter the trend seen in the data. A further issue is that the model is based on only 11 observed values.
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If a goal of a nation's residents is to increase marginal productivity, they should increase
A) expenditures on education. B) the inheritance tax. C) exports. D) the marginal propensity to consume.
The marginal propensity to consume plus the marginal propensity to save must always equal 1
a. True b. False Indicate whether the statement is true or false
A straight-line production possibilities curve takes this shape because
A) the opportunity cost of producing a good is constant. B) the opportunity cost of producing more of a good is decreasing. C) resources are better suited for producing one output than another. D) resources are fixed.
At equilibrium in a market for a product, the total revenues received by sellers equal the:
A. Market producer surplus B. Total amount spent by buyers on the product C. Total profits of sellers D. Market consumer surplus