ECON 528 Midterm Exam – Questions With
Accurate Solutions
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Terms in this set (187)
Managerial economics is best how businesses can decide on the best use of
defined as the economic study of: scarce resources.
Managerial economics helps make decisions in the face of scarcity.
managers
Microeconomics includes the study choices made by individuals and businesses
of the
The form of economics most relevant microeconomics
to managerial decision-making within
the firm
CEOs should focus on maximizing firm profits.
,Managerial economics generally Practice
refers to the integration of economic
theory with business
A managerial decision is not it increases costs more than revenue
profitable if
According to the profit-maximization . False
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 Studying and understanding Managerial Economics
Economics? is important to make crucial business decisions to
maximize profit and create value for the product or
service one is providing. By blending economic
theory and empirical data, managers can
understand the "how" and "why" a certain business
decision will maximize wealth. Once managers
understand this reasoning behind economic
theories, they can use data to refine the theory
aspect of managerial economics to better fit their
business, yielding continuous improved decisions
and ultimately the most desirable results. This helps
managers to create value. Consumers, just like firms,
have scare resources. Consumers will invest their
resources in the product or service that meets their
needs with the greatest value. Understanding
managerial economics gives managers an edge in
creating value for their products.
, 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
Microeconomic models are used to make predictions.
explain real-life phenomena.
evaluate production alternatives.
Managerial Economics as a Provide logic and methodology to find solutions to
specialized branch of Economics business problems
Unlike an accountant, an economist replacement
measures costs on a(n) ________ basis
When an economist uses the term opportunity cost of producing a good or service,
"cost" referring to a firm, the which includes both implicit and explicit cost
economist refers to the
Accounting costs are historical costs
Accurate Solutions
Add to calendar
Play your way to mastery with fun games
Match Blocks Charms NEW
Terms in this set (187)
Managerial economics is best how businesses can decide on the best use of
defined as the economic study of: scarce resources.
Managerial economics helps make decisions in the face of scarcity.
managers
Microeconomics includes the study choices made by individuals and businesses
of the
The form of economics most relevant microeconomics
to managerial decision-making within
the firm
CEOs should focus on maximizing firm profits.
,Managerial economics generally Practice
refers to the integration of economic
theory with business
A managerial decision is not it increases costs more than revenue
profitable if
According to the profit-maximization . False
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 Studying and understanding Managerial Economics
Economics? is important to make crucial business decisions to
maximize profit and create value for the product or
service one is providing. By blending economic
theory and empirical data, managers can
understand the "how" and "why" a certain business
decision will maximize wealth. Once managers
understand this reasoning behind economic
theories, they can use data to refine the theory
aspect of managerial economics to better fit their
business, yielding continuous improved decisions
and ultimately the most desirable results. This helps
managers to create value. Consumers, just like firms,
have scare resources. Consumers will invest their
resources in the product or service that meets their
needs with the greatest value. Understanding
managerial economics gives managers an edge in
creating value for their products.
, 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
Microeconomic models are used to make predictions.
explain real-life phenomena.
evaluate production alternatives.
Managerial Economics as a Provide logic and methodology to find solutions to
specialized branch of Economics business problems
Unlike an accountant, an economist replacement
measures costs on a(n) ________ basis
When an economist uses the term opportunity cost of producing a good or service,
"cost" referring to a firm, the which includes both implicit and explicit cost
economist refers to the
Accounting costs are historical costs
