Statistics and Economics Quiz

A measure of the average squared difference between predicted and actual values. It quantifies the error in a prediction model.

The price estimated by a model based on a given quantity.

The squared difference between the predicted price and the actual price.

The relationship between the item's price and the number of units.

The quantity that maximizes profit, often derived from calculating the maximum point of a profit function.

The amount of an item consumers are willing to buy at a particular price.

The rate at which profit changes in relation to the quantity produced.

Find the quantity (Q*) that produces the highest possible profit.

The difference between total revenue (R(Q)) and total cost (C(Q)) at a given quantity (Q). It represents the profit earned by producing a certain quantity of goods.

The additional revenue generated by selling one more unit.

The additional cost incurred by producing one more unit.

At the maximum profit point, marginal revenue (MR) equals marginal cost (MC). This signifies that the additional revenue generated by selling one more unit is exactly equal to the additional cost of producing it.

A mathematical equation representing the relationship between the price of a good and the quantity demanded by consumers.

A mathematical equation showing the relationship between the cost of production and the quantity of goods produced.

The difference in profit (Q*) between a sustainable product and a non-sustainable product.

Involving various parties (like customers, employees, or governments) in decisions affecting a company or project.

The core reason behind a company's existence, beyond simply making money.

Changing a company's image, logo, or message to better reflect its new purpose or values.

BP's strategy to shift from solely focusing on oil and gas to including renewable energy sources.

Products that are similar in quality and price, easily traded in markets.

Working with policymakers to create energy policies supporting sustainability and renewable options.

Attracting top scientists and engineers to drive innovation and renewable energy efforts.

Climate change can limit a company's ability to produce and sell products, particularly those heavily reliant on fossil fuels.

A situation where one party in a transaction has more or better information than the other, leading to an imbalance in bargaining power.

Production of goods or services that do not maximize overall social welfare, often caused by incomplete information or market failures.

Producers or consumers making decisions based on inadequate information, leading to a higher quantity of goods produced than is socially optimal.

The decrease in overall well-being due to market inefficiencies, such as asymmetric information.

Government or private rules designed to address information gaps and promote socially efficient production.

It's rarely possible for regulation to completely eliminate all asymmetric information in a market, but even partial closure can improve efficiency.

The price at which the quantity demanded equals the quantity supplied, where the market reaches equilibrium.

The difference between what consumers truly desire (with full information) and what they demand when they lack complete knowledge.

Non-governmental organizations (NGOs) increasingly influence achieving social efficiency through actions like boycotts and campaigns.

Government agencies are often slow and cumbersome in achieving social change due to their complex processes and structures.

The cost of influencing government policy through lobbying has risen, making it more challenging for groups to effect change.

Modifying corporate behavior across borders requires collaborating with NGOs and activists from different countries.

Public trust in business has eroded, increasing the need for corporations to demonstrate ethical behavior.

Technology has made it easier for NGOs and individuals to reach large audiences and influence public opinion.

NGOs play a key role in changing corporate behavior through public pressure, campaigns, and boycotts.

Achieving a balance between social and economic goals, ensuring businesses operate in a responsible and ethical manner.

The additional positive effects a company experiences by voluntarily complying with social or environmental regulations, such as improved reputation or increased customer loyalty.

The additional expenses or resources a company incurs by voluntarily complying with social or environmental regulations, including changes in production processes or investments in sustainable practices.

The level of compliance with social regulations that balances the marginal benefit and marginal cost for a company, maximizing its overall gain.

Facebook's large-scale data facility in Prineville, Oregon, which sparked environmental concerns due to its energy consumption.

Environmental organization Greenpeace targeted Facebook to encourage the company to use renewable energy to power its data centers.

The location of Facebook's data center in Prineville, Oregon, was chosen for its potential for efficient energy use.

Factors that make a company an attractive target for social or environmental campaigns, such as high market share, consumer-oriented products, and low switching costs.

Facebook's decision to build one large data center in Prineville instead of leasing space in various locations to optimize costs and efficiency.