ECON 528 Midterm Exam – Questions With
Accurate Solutions
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Terms in this set (202)
Managerial economics is best c. how businesses can decide on the best use of
defined as the economic study of: scarce resources.
a. how businesses can sell the most
products.
b. how businesses can operate at the
lowest costs.
c. how businesses can decide on the
best use of scarce resources.
d. how businesses can make the most
profits.
,Managerial economics: b. helps managers make decisions in the face of
a. describes how pay for managers is scarcity.
set.
b. helps managers make decisions in
the face of scarcity.
c. explains which products consumers
will buy.
d. ensures managers always make
good decisions.
Microeconomics includes the study b. choices made by individuals and businesses
of the:
a. aggregate effects on the national
economy.
b. choices made by individuals and
businesses.
c. reasons why the government
changes interest rates.
d. nationwide unemployment rate.
e. recessions and inflation in the
global economy.
The form of economics most relevant d. microeconomics
to managerial decision-making within
the firm is:
a. welfare economics
b. macroeconomics
c. free-enterprise economics
d. microeconomics
CEOs should focus on: c. maximizing firm profits.
a. beating their competitors.
b. getting the best pay package for
the senior management team.
c. maximizing firm profits.
d. minimizing costs.
,Managerial economics generally B. Practice
refers to the integration of economic
theory with business _________
A. Ethics
B. Practice
C. Management
D. All of the above
A managerial decision is not C. it increases costs more than revenue
profitable if:
A. if increases revenue more than
costs.
B. it increases some revenues more
than it decreases others.
C. it increases costs more than
revenue.
D. it decreases some costs more than
it increases others.
(True or False) According to the False
profit-maximization goal, the firm
should attempt to maximize short-run
profits since there is too much
uncertainty associated with long-run
profits.
Why is it useful to study Managerial - help with making crucial business decisions
Economics? - maximize profits
- create value for the product or service provided
, Why can Managerial Economics be Managerial Economics is applicable to different
applied to any business decision types of organizations like for-profit firms, not-for
making process, regardless of the profit-firms, and government agencies. All of these
industry? types of organizations provide goods and services,
even though they do not all have the same
objectives when it comes to maximizing wealth.
According to the text, "[economic] models are
simplified representations of a real-world
organization and its environment" and managers can
use these models to make decisions in a timely and
cost effective manner. The models to do match
every detail of an organization so, although the over
arching objectives may be different from firm to
firm, business transactions generally conform to
similar standards and processes. A model can be
used to redirect the outcome of a decision and it
does not judge wether the outcome does/does not
support the organizations objectives.
Microeconomics studies the scarce resources
allocation of:
A) decision makers.
B) scarce resources.
C) models.
D) unlimited resources.
Microeconomic models are used to: All:
A) make predictions. make predictions.
B) explain real-life phenomena. explain real-life phenomena.
C) evaluate production alternatives. evaluate production alternatives.
D) All of the above.
Accurate Solutions
Add to calendar
Play your way to mastery with fun games
Match Blocks Charms NEW
Terms in this set (202)
Managerial economics is best c. how businesses can decide on the best use of
defined as the economic study of: scarce resources.
a. how businesses can sell the most
products.
b. how businesses can operate at the
lowest costs.
c. how businesses can decide on the
best use of scarce resources.
d. how businesses can make the most
profits.
,Managerial economics: b. helps managers make decisions in the face of
a. describes how pay for managers is scarcity.
set.
b. helps managers make decisions in
the face of scarcity.
c. explains which products consumers
will buy.
d. ensures managers always make
good decisions.
Microeconomics includes the study b. choices made by individuals and businesses
of the:
a. aggregate effects on the national
economy.
b. choices made by individuals and
businesses.
c. reasons why the government
changes interest rates.
d. nationwide unemployment rate.
e. recessions and inflation in the
global economy.
The form of economics most relevant d. microeconomics
to managerial decision-making within
the firm is:
a. welfare economics
b. macroeconomics
c. free-enterprise economics
d. microeconomics
CEOs should focus on: c. maximizing firm profits.
a. beating their competitors.
b. getting the best pay package for
the senior management team.
c. maximizing firm profits.
d. minimizing costs.
,Managerial economics generally B. Practice
refers to the integration of economic
theory with business _________
A. Ethics
B. Practice
C. Management
D. All of the above
A managerial decision is not C. it increases costs more than revenue
profitable if:
A. if increases revenue more than
costs.
B. it increases some revenues more
than it decreases others.
C. it increases costs more than
revenue.
D. it decreases some costs more than
it increases others.
(True or False) According to the False
profit-maximization goal, the firm
should attempt to maximize short-run
profits since there is too much
uncertainty associated with long-run
profits.
Why is it useful to study Managerial - help with making crucial business decisions
Economics? - maximize profits
- create value for the product or service provided
, Why can Managerial Economics be Managerial Economics is applicable to different
applied to any business decision types of organizations like for-profit firms, not-for
making process, regardless of the profit-firms, and government agencies. All of these
industry? types of organizations provide goods and services,
even though they do not all have the same
objectives when it comes to maximizing wealth.
According to the text, "[economic] models are
simplified representations of a real-world
organization and its environment" and managers can
use these models to make decisions in a timely and
cost effective manner. The models to do match
every detail of an organization so, although the over
arching objectives may be different from firm to
firm, business transactions generally conform to
similar standards and processes. A model can be
used to redirect the outcome of a decision and it
does not judge wether the outcome does/does not
support the organizations objectives.
Microeconomics studies the scarce resources
allocation of:
A) decision makers.
B) scarce resources.
C) models.
D) unlimited resources.
Microeconomic models are used to: All:
A) make predictions. make predictions.
B) explain real-life phenomena. explain real-life phenomena.
C) evaluate production alternatives. evaluate production alternatives.
D) All of the above.
