THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 72

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The table below is the data set of the Shiller Real Home Price Index for the years 1894-1904.
Use a smoothing constant of α = 0.8 to determine the forecasts using simple exponential smoothing.

-The time series that reflects a wavelike pattern describing a long-term trend that is generally apparent over a number of years is called the:

• A)trend component.
• B)cyclical component.
• C)seasonal component.
• D)irregular component.

Distinguish between explicit and implicit costs and their relevance to economic and accounting profits.

Explain the impact of diminishing marginal product on cost curves.

Identify the components of total costs in production.

Understand the concept of opportunity costs and their role in decision-making.

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Definitions:

Sunk Costs

Expenses that have already been incurred and cannot be recovered.

Lack

The state of being without something or not having enough of it.

Understanding

The process of comprehending or grasping the meaning, significance, or nature of something.

Minimize Losses

Minimizing losses involves strategies or actions taken by individuals or businesses to reduce the amount of money or resources lost.