TEST BANK FOR Managerial Economics, 9th Edition By William F Samuelson

TEST BANK FOR Managerial Economics, 9th Edition
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William F. Samuelson, Stephen G. Marks, Jay L. Zag
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orsky
File:70Ch01;70CHAPTER701:70Introduction70to70Economic70Decision70M

aking70MULTIPLE70CHOICE

1. Managerial70economics70can70best70be70defined70as70the:
a) macroeconomics70and70microeconomics70for70managers.
b) study70of70economic70incentives70on70consumer70behavior70and70demand.
c) analysis70of70the70labor70market70through70the70behavior70of70workers70and70managers.
d) analysis70of70major70management70decisions70using70economic70tools.
e) study70of70the70strategic70interaction70between70firms70in70a70market.

ANSWER:70d
SECTION70REFERENCE:70Introduction70
DIFFICULTY70LEVEL:70Easy



2. Which70of70the70following70is70not70one70of70the70steps70in70managerial70decision70making?
a) Predicting70the70consequences70of70a70decision.
b) Exploring70the70alternatives70to70the70decision.
c) Defining70the70problem70and70the70objectives70of70the70decision.
d) Negotiating70a70consensus70to70implement70the70decision.
e) Performing70sensitivity70analysis.

ANSWER:70d
SECTION70REFERENCE:70Six70Steps70to70Decision70Making70DIFFI
CULTY70LEVEL:70Easy



3. Profit70maximization70is70an70ambiguous70guide70to70decision70making70in70the70private70sector70be
cause:
a) firms70in70the70private70sector70usually70do70not70aim70at70profit70maximization.
b) the70goal70of70profit70maximization70contradicts70the70goal70of70satisfying70the70firm‘s70sharehol
ders.
c) of70the70presence70of70risk70and70uncertainty.
d) profit-maximization70ignores70social70costs70and70benefits.
e) None70of70the70above70answers70is70correct.

ANSWER:70c
SECTION70REFERENCE:70Six70Steps70to70Decision70Making70DIFFI
CULTY70LEVEL:70Easy
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,4. Which70of70the70following70is70true70of70economic70models?
a) Models70are70too70theoretical70to70be70applicable70in70real70world70decisions.
b) Models70are70not70useful70because70uncertainty70prevents70accurate70forecasts.
c) Models70are70simplified70descriptions70of70processes,70relationships,70or70other70phenomena.
d) Models70describe70real70world70situations70in70complete70detail.
e) Models70are70not70useful70because70they70do70not70take70into70account70complicating
70and70less70important70features70of70a70problem.


ANSWER:70c
SECTION70REFERENCE:70Six70Steps70to70Decision70Making70DIFFI
CULTY70LEVEL:70Medium



5. Which70of70the70following70correctly70describes70a70deterministic70economic70model?
a) A70deterministic70model70is70a70model70for70which70the70outcome70is70predicted70with70certainty.
b) A70deterministic70model70can70only70be70used70to70explain70short-run70economic70phenomena.
c) A70deterministic70model70is70most70useful70in70identifying70long-term70trends.
d) A70deterministic70model70is70used70in70the70study70of70normative70economics.
e) The70outcome70of70a70deterministic70model70is70random70and70has70probabilities70attached.

ANSWER:70a
SECTION70REFERENCE:70Six70Steps70to70Decision70Making70DIFFI
CULTY70LEVEL:70Easy



6. Which70of70the70following70correctly70explains70a70probabilistic70model?
a) A70probabilistic70model70gives70a70description70of70real70world70economic70phenomena.
b) A70probabilistic70model70shows70the70possibility70of70a70range70of70outcomes.
c) A70probabilistic70model70examines70the70changes70in70economic70variables70over70a70period70of70
time.
d) A70probabilistic70model70is70based70on70value70judgments.
e) A70probabilistic70model70is70used70to70explain70long-run70economic70phenomena

ANSWER:70b
SECTION70REFERENCE:70Six70Steps70to70Decision70Making70DIFFI
CULTY70LEVEL:70Easy



7. Maximizing70profit70by70enumerating70the70profit70outcomes70of70different70courses70of70action
a) Is70only70applicable70to70problems70with70a70small70number70of70alternatives.
b) Becomes70increasingly70costly70as70the70number70of70choices70increase.
c) Always70discovers70the70best70possible70choice.

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, d) Provides70a70useful70shortcut70to70finding70the70optimal70choice.
e) Answers70b70and70c70are70both70correct.

ANSWER:70b
SECTION70REFERENCE:70Six70Steps70to70Decision70Making70DIFFI
CULTY70LEVEL:70Medium



8. A70beverages70company70wants70to70launch70a70new70diet70soda70aimed70at70diabetics70and
70health-70conscious70customers.70It70will70use70a70
economic70model70to70identify70its70target70custo
mers.
a) deterministic
b) dynamic
c) qualitative
d) stochastic
e) probabilistic

ANSWER:70a
SECTION70REFERENCE:70Six70Steps70to70Decision70Making70DIFFI
CULTY70LEVEL:70Medium



9. Given70that70the70market70share70of70a70firm70depends70on70many70unpredictable70factors,70a70fir
m70will70use70a70
economic70model70to70estimate70the70market70share70for70one70of70its70products.
a) deterministic
b) dynamic
c) qualitative
d) probabilistic
e) comparative70statics

ANSWER:70d
SECTION70REFERENCE:70Six70Steps70to70Decision70Making70DIFFI
CULTY70LEVEL:70Medium



10. Sensitivity70analysis70is70used70by70a70firm70to:
a) analyze70the70impact70of70a70change70in70the70price70of70the70good70on70the70demand70for70the70g
ood.
b) examine70the70static70effects70of70an70economic70decision70on70the70firm‘s70profitability.
c) analyze70the70social70costs70and70benefits70of70an70economic70decision.
d) examine70the70opportunity70costs70of70an70economic70decision.
e) examine70how70an70optimal70decision70is70affected70if70key70economic70facts70vary.

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, ANSWER:70e
SECTION70REFERENCE:70Six70Steps70to70Decision70Making




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