MANAGERIAL ECONOMICS EXAM SCRIPT
2026 FULL QUESTIONS AND CORRECT
ANSWERS ALREADY PASSED
◉ THE STUDY OF THE BEHAVIOR OF HUMAN BEINGS IN
PRODUCING, DISTRIBUTING AND CONSUMING MATERIAL
GOODS AND SERVICES IN A WORLD OF SCARCE RESOURCES
IS CALLED. Answer: ECONOMICS - STUDY OF PRICE,
ALLOCATION
ANOTHER DESCRIPTION: THE SCIENCE WHICH STUDIES
HUMAN BEHAVIOR AS A RELATIONSHIP B/W ENDS AND
SCARCE MEANS WHICH HAVE ALTERNATIVE USES.
***KEY TERM SCARCE RESOURCE
EX: PARKING SPOTS ON CAMPUS
◉ MANAGEMENT IS. Answer: DISCIPLINE OF ORGANIZING
AND ALLOCATING A FIRMS SCARCE RESOURCES TO ACHIEVE
ITS DESIRED OBJECTIVES
,***EX: MANAGERS WILL DECIDE IF WE ARE GOING BUILD A
NEW PARKING LOT, LOCATION, # OF SPOTS, HOW MUCH TO
CHARGE?
◉ MANAGERIAL ECONOMICS IS THE. Answer: USE OF
ECONOMIC ANALYSIS TO MAKE BUSINESS DECISIONS
INVOLVING THE BEST USE OF AN ORGANIZATIONS SCARCE
RESOURCES
◉ WHAT ARE THE 4 DIVISIONS OF MARKET TYPES. Answer: 1.
PERFECT COMPETITION
2. PURE MONOPOLY
3. MONOPOLISTIC COMPETITION
4. OLIGOPOLY
◉ WHAT ARE THE 2 BROAD CATEGORIES OF ECONOMICS.
Answer: MICROECONOMICS - INDIVIDUAL CONSUMERS AND
PRODUCERS IN SPECIFIC MARKETS
MACROECONOMICS - AGGREGATE ECONOMY (POLITICS,
WORLD FACTORS)
◉ MICRO-ECONOMICS DEAL WITH. Answer: SUPPLY &
DEMAND
INPUT/OUTPUTS
,PRODUCTION COSTS
DISTRIBUTION OF INCOME...
◉ EXAMPLES OF MACROECONOMICS. Answer: GROSS
DOMESTIC PRODUCT (GDP)
UNEMPLOYMENT
INFLATION
TRADE (NATIONAL AND INTERNATIONAL)
◉ OPPORTUNITY-COST IS DEFINED BY. Answer: AMOUNT OF
SUBJECTIVE VALUE THAT MUST BY SACRIFICED IN
CHOOSING ONE ACTIVITY OVER THE NEXT BEST
ALTERNATIVE
"GUNS VS BUTTER COMPARISON"
"GRADUATE VS EXPERIENCE COMPARISON"
"TEACHING IN EUROPE/EXCHANGE RATE COMPARISONS"
"RUSSIA/POLITICAL FACTORS COMPARISON"
◉ NON-MONETARY COST - PARKING LOT EXAMPLE. Answer:
LOSS OF TIME (OPPOTUNITY COST)
SOME LOSS IN GAS MONEY
, *SATURDAY MORNING CLASS - SACRAFICE SLEEP TIME
◉ DEFINE PHYSICAL-CAPITAL. Answer: "WHAT GETS USED -
BUT NOT USED UP"
IE: TABLES, CHAIRS, SIGN...
◉ DEFINE FINANCIAL-CAPITAL. Answer: MONEY THAT IS USED
TO PURCHASE PHYSICAL CAPITAL/ASSETS
◉ EXAMPLE OF AN INDUSTRY THAT USES LARGE PHYSICAL
CAPITAL. Answer: AIRLINES/AIRPLANE
◉ ALLOCATING USES CAN BE VIEWED AS COMPRISING 3
SEPARATE CHOICES. Answer: 1. WHAT - GOODS & SERVICES
SHOULD BE PRODUCED & AT WHAT QUANTITIES?
(FIRMS POINT OF VIEW)
2. HOW - SHOULD THESE GOODS & SERVICES BE PRODUCED?
(MANAGERS POINT OF VIEW)
3. FOR WHOM - WHO'S THE CUSTOMER? (ANALOGOUS,
COUNTRY DETERMINATIONS)
2026 FULL QUESTIONS AND CORRECT
ANSWERS ALREADY PASSED
◉ THE STUDY OF THE BEHAVIOR OF HUMAN BEINGS IN
PRODUCING, DISTRIBUTING AND CONSUMING MATERIAL
GOODS AND SERVICES IN A WORLD OF SCARCE RESOURCES
IS CALLED. Answer: ECONOMICS - STUDY OF PRICE,
ALLOCATION
ANOTHER DESCRIPTION: THE SCIENCE WHICH STUDIES
HUMAN BEHAVIOR AS A RELATIONSHIP B/W ENDS AND
SCARCE MEANS WHICH HAVE ALTERNATIVE USES.
***KEY TERM SCARCE RESOURCE
EX: PARKING SPOTS ON CAMPUS
◉ MANAGEMENT IS. Answer: DISCIPLINE OF ORGANIZING
AND ALLOCATING A FIRMS SCARCE RESOURCES TO ACHIEVE
ITS DESIRED OBJECTIVES
,***EX: MANAGERS WILL DECIDE IF WE ARE GOING BUILD A
NEW PARKING LOT, LOCATION, # OF SPOTS, HOW MUCH TO
CHARGE?
◉ MANAGERIAL ECONOMICS IS THE. Answer: USE OF
ECONOMIC ANALYSIS TO MAKE BUSINESS DECISIONS
INVOLVING THE BEST USE OF AN ORGANIZATIONS SCARCE
RESOURCES
◉ WHAT ARE THE 4 DIVISIONS OF MARKET TYPES. Answer: 1.
PERFECT COMPETITION
2. PURE MONOPOLY
3. MONOPOLISTIC COMPETITION
4. OLIGOPOLY
◉ WHAT ARE THE 2 BROAD CATEGORIES OF ECONOMICS.
Answer: MICROECONOMICS - INDIVIDUAL CONSUMERS AND
PRODUCERS IN SPECIFIC MARKETS
MACROECONOMICS - AGGREGATE ECONOMY (POLITICS,
WORLD FACTORS)
◉ MICRO-ECONOMICS DEAL WITH. Answer: SUPPLY &
DEMAND
INPUT/OUTPUTS
,PRODUCTION COSTS
DISTRIBUTION OF INCOME...
◉ EXAMPLES OF MACROECONOMICS. Answer: GROSS
DOMESTIC PRODUCT (GDP)
UNEMPLOYMENT
INFLATION
TRADE (NATIONAL AND INTERNATIONAL)
◉ OPPORTUNITY-COST IS DEFINED BY. Answer: AMOUNT OF
SUBJECTIVE VALUE THAT MUST BY SACRIFICED IN
CHOOSING ONE ACTIVITY OVER THE NEXT BEST
ALTERNATIVE
"GUNS VS BUTTER COMPARISON"
"GRADUATE VS EXPERIENCE COMPARISON"
"TEACHING IN EUROPE/EXCHANGE RATE COMPARISONS"
"RUSSIA/POLITICAL FACTORS COMPARISON"
◉ NON-MONETARY COST - PARKING LOT EXAMPLE. Answer:
LOSS OF TIME (OPPOTUNITY COST)
SOME LOSS IN GAS MONEY
, *SATURDAY MORNING CLASS - SACRAFICE SLEEP TIME
◉ DEFINE PHYSICAL-CAPITAL. Answer: "WHAT GETS USED -
BUT NOT USED UP"
IE: TABLES, CHAIRS, SIGN...
◉ DEFINE FINANCIAL-CAPITAL. Answer: MONEY THAT IS USED
TO PURCHASE PHYSICAL CAPITAL/ASSETS
◉ EXAMPLE OF AN INDUSTRY THAT USES LARGE PHYSICAL
CAPITAL. Answer: AIRLINES/AIRPLANE
◉ ALLOCATING USES CAN BE VIEWED AS COMPRISING 3
SEPARATE CHOICES. Answer: 1. WHAT - GOODS & SERVICES
SHOULD BE PRODUCED & AT WHAT QUANTITIES?
(FIRMS POINT OF VIEW)
2. HOW - SHOULD THESE GOODS & SERVICES BE PRODUCED?
(MANAGERS POINT OF VIEW)
3. FOR WHOM - WHO'S THE CUSTOMER? (ANALOGOUS,
COUNTRY DETERMINATIONS)
