TEST BANK FOR Managerial Economics, with eBook Access Code: Analysis and Management 10th Edition by William F. Samuelson ISBN:978-1394268108 ALL CHAPTERS COVERED YOUR ULTIMATE GUIDE 100% VERIFIED A+ GRADE ASSURED!!!!!! NEW LATEST UPDATE!!!!!!

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ML ML


ManagerialMLEconomics,ML10thMLEditionMLWilliamMLF.MLSamuelson,MLStephenMLG.MLMarks,MLJayMLL.M
LZagorskyMLChapterML1-17




File:MLCh01;MLCHAPTERML1:MLIntroductionMLtoMLEconomicMLDecisionMLM

akingMLMULTIPLEMLCHOICE

1. ManagerialMLeconomicsMLcanMLbestMLbeMLdefinedMLasMLthe:
a) macroeconomicsMLandMLmicroeconomicsMLforMLmanagers.
b) studyMLofMLeconomicMLincentivesMLonMLconsumerMLbehaviorMLandMLdemand.
c) analysisMLofMLtheMLlaborMLmarketMLthroughMLtheMLbehaviorMLofMLworkersMLandMLmanagers.
d) analysisMLofMLmajorMLmanagementMLdecisionsMLusingMLeconomicMLtools.
e) studyMLofMLtheMLstrategicMLinteractionMLbetweenMLfirmsMLinMLaMLmarket.

ANSWER:MLd
SECTIONMLREFERENCE:MLIntroductionML
DIFFICULTYMLLEVEL:MLEasy



2. WhichMLofMLtheMLfollowingMLisMLnotMLoneMLofMLtheMLstepsMLinMLmanagerialMLdecisionMLmaking?
a) PredictingMLtheMLconsequencesMLofMLaMLdecision.
b) ExploringMLtheMLalternativesMLtoMLtheMLdecision.
c) DefiningMLtheMLproblemMLandMLtheMLobjectivesMLofMLtheMLdecision.
d) NegotiatingMLaMLconsensusMLtoMLimplementMLtheMLdecision.
e) PerformingMLsensitivityMLanalysis.

ANSWER:MLd
SECTIONMLREFERENCE:MLSixMLStepsMLtoMLDecisionMLMakingMLDIFFI
CULTYMLLEVEL:MLEasy



3. ProfitMLmaximizationMLisMLanMLambiguousMLguideMLtoMLdecisionMLmakingMLinMLtheMLprivateMLsectorMLbecause:
a) firmsMLinMLtheMLprivateMLsectorMLusuallyMLdoMLnotMLaimMLatMLprofitMLmaximization.
b) theMLgoalMLofMLprofitMLmaximizationMLcontradictsMLtheMLgoalMLofMLsatisfyingMLtheMLfirm’sMLshareholders.
c) ofMLtheMLpresenceMLofMLriskMLandMLuncertainty.
d) profit-maximizationMLignoresMLsocialMLcostsMLandMLbenefits.
e) NoneMLofMLtheMLaboveMLanswersMLisMLcorrect.

ANSWER:MLc
SECTIONMLREFERENCE:MLSixMLStepsMLtoMLDecisionMLMakingMLDIFFI
CULTYMLLEVEL:MLEasy


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,4. WhichMLofMLtheMLfollowingMLisMLtrueMLofMLeconomicMLmodels?
a) ModelsMLareMLtooMLtheoreticalMLtoMLbeMLapplicableMLinMLrealMLworldMLdecisions.
b) ModelsMLareMLnotMLusefulMLbecauseMLuncertaintyMLpreventsMLaccurateMLforecasts.
c) ModelsMLareMLsimplifiedMLdescriptionsMLofMLprocesses,MLrelationships,MLorMLotherMLphenomena.
d) ModelsMLdescribeMLrealMLworldMLsituationsMLinMLcompleteMLdetail.
e) ModelsMLareMLnotMLusefulMLbecauseMLtheyMLdoMLnotMLtakeMLintoMLaccountMLcomplicatin
gMLandMLlessMLimportantMLfeaturesMLofMLaMLproblem.

ANSWER:MLc
SECTIONMLREFERENCE:MLSixMLStepsMLtoMLDecisionMLMakingMLDIFFI
CULTYMLLEVEL:MLMedium



5. WhichMLofMLtheMLfollowingMLcorrectlyMLdescribesMLaMLdeterministicMLeconomicMLmodel?
a) AMLdeterministicMLmodelMLisMLaMLmodelMLforMLwhichMLtheMLoutcomeMLisMLpredictedMLwithMLcertainty.
b) AMLdeterministicMLmodelMLcanMLonlyMLbeMLusedMLtoMLexplainMLshort-runMLeconomicMLphenomena.
c) AMLdeterministicMLmodelMLisMLmostMLusefulMLinMLidentifyingMLlong-termMLtrends.
d) AMLdeterministicMLmodelMLisMLusedMLinMLtheMLstudyMLofMLnormativeMLeconomics.
e) TheMLoutcomeMLofMLaMLdeterministicMLmodelMLisMLrandomMLandMLhasMLprobabilitiesMLattached.

ANSWER:MLa
SECTIONMLREFERENCE:MLSixMLStepsMLtoMLDecisionMLMakingMLDIFFI
CULTYMLLEVEL:MLEasy



6. WhichMLofMLtheMLfollowingMLcorrectlyMLexplainsMLaMLprobabilisticMLmodel?
a) AMLprobabilisticMLmodelMLgivesMLaMLdescriptionMLofMLrealMLworldMLeconomicMLphenomena.
b) AMLprobabilisticMLmodelMLshowsMLtheMLpossibilityMLofMLaMLrangeMLofMLoutcomes.
c) AMLprobabilisticMLmodelMLexaminesMLtheMLchangesMLinMLeconomicMLvariablesMLoverMLaMLperiodMLofMLtime.
d) AMLprobabilisticMLmodelMLisMLbasedMLonMLvalueMLjudgments.
e) AMLprobabilisticMLmodelMLisMLusedMLtoMLexplainMLlong-runMLeconomicMLphenomena

ANSWER:MLb
SECTIONMLREFERENCE:MLSixMLStepsMLtoMLDecisionMLMakingMLDIFFI
CULTYMLLEVEL:MLEasy



7. MaximizingMLprofitMLbyMLenumeratingMLtheMLprofitMLoutcomesMLofMLdifferentMLcoursesMLofMLaction
a) IsMLonlyMLapplicableMLtoMLproblemsMLwithMLaMLsmallMLnumberMLofMLalternatives.
b) BecomesMLincreasinglyMLcostlyMLasMLtheMLnumberMLofMLchoicesMLincrease.
c) AlwaysMLdiscoversMLtheMLbestMLpossibleMLchoice.
d) ProvidesMLaMLusefulMLshortcutMLtoMLfindingMLtheMLoptimalMLchoice.
e) AnswersMLbMLandMLcMLareMLbothMLcorrect.


1-4

, ANSWER:MLb
SECTIONMLREFERENCE:MLSixMLStepsMLtoMLDecisionMLMakingMLDIFF
ICULTYMLLEVEL:MLMedium



8. AMLbeveragesMLcompanyMLwantsMLtoMLlaunchMLaMLnewMLdietMLsodaMLaimedMLatMLdiabeticsMLan
dMLhealth-MLconsciousMLcustomers.MLItMLwillMLuseMLaML
economicMLmodelMLtoMLidentifyMLitsMLtargetMLcusto
mers.
a) deterministic
b) dynamic
c) qualitative
d) stochastic
e) probabilistic

ANSWER:MLa
SECTIONMLREFERENCE:MLSixMLStepsMLtoMLDecisionMLMakingMLDIFFI
CULTYMLLEVEL:MLMedium



9. GivenMLthatMLtheMLmarketMLshareMLofMLaMLfirmMLdependsMLonMLmanyMLunpredictableMLfactors,MLaMLf
irmMLwillMLuseMLaML
economicMLmodelMLtoMLestimateMLtheMLmarketMLshareMLforMLoneMLofMLitsMLproducts.
a) deterministic
b) dynamic
c) qualitative
d) probabilistic
e) comparativeMLstatics

ANSWER:MLd
SECTIONMLREFERENCE:MLSixMLStepsMLtoMLDecisionMLMakingMLDIFFI
CULTYMLLEVEL:MLMedium



10. SensitivityMLanalysisMLisMLusedMLbyMLaMLfirmMLto:
a) analyzeMLtheMLimpactMLofMLaMLchangeMLinMLtheMLpriceMLofMLtheMLgoodMLonMLtheMLdemandMLforMLtheMLgood.
b) examineMLtheMLstaticMLeffectsMLofMLanMLeconomicMLdecisionMLonMLtheMLfirm’sMLprofitability.
c) analyzeMLtheMLsocialMLcostsMLandMLbenefitsMLofMLanMLeconomicMLdecision.
d) examineMLtheMLopportunityMLcostsMLofMLanMLeconomicMLdecision.
e) examineMLhowMLanMLoptimalMLdecisionMLisMLaffectedMLifMLkeyMLeconomicMLfactsMLvary.

ANSWER:MLe
SECTIONMLREFERENCE:MLSixMLStepsMLtoMLDecisionMLMakingMLDIFFI
CULTYMLLEVEL:MLEasy


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, 11. AMLcosmeticsMLcompanyMLisMLconductingMLaMLsecond-
yearMLreviewMLofMLoneMLofMLitsMLnewestMLproducts.MLTheMLmarketingMLdepartmentMLexpectsMLthat
MLtheMLfirmMLwillMLcontinueMLtoMLearnMLprofitsMLfromMLtheMLsaleMLofMLtheMLproductMLinMLtheMLthird

MLyearMLasMLitMLdidMLinMLtheMLpastMLtwoMLyears.MLSeniorMLmanagement,MLhowever,MLfeelsMLthatMLt

heMLprofitMLprojectionsMLwouldMLvaryMLbasedMLonMLotherMLfactorsMLsuchMLasMLtheMLpriceMLofMLthe
MLcompetitor'sMLproducts,MLtheMLactualMLlevelMLofMLsales,MLandMLtheMLpossibilityMLofMLcostMLreduc

tions.MLInMLotherMLwords,MLtheMLseniorMLmanagementMLisMLundertakingML .
a) aMLsensitivityMLanalysis
b) anMLenumerationMLstudy
c) aMLbenefit-costMLanalysis
d) aMLcontingentMLvaluationMLstudy
e) aMLstrategicMLanalysis

ANSWER:MLa
SECTIONMLREFERENCE:MLSixMLStepsMLtoMLDecisionMLMakingMLDIFFI
CULTYMLLEVEL:MLMedium



12. AccordingMLtoMLtheMLsatisficingMLmodelMLofMLmanagementMLbehavior,MLtheMLgoalMLofMLaMLfirmMLisMLto:
a) satisfyMLcustomers,MLemployees,MLandMLshareholders.
b) maximizeMLtheMLgainMLtoMLsocietyMLandMLnotMLjustMLtoMLshareholders.
c) achieveMLaMLsatisfactoryMLlevelMLofMLperformanceMLagainstMLaMLbenchmark.
d) maximizeMLsalesMLrevenueMLandMLnotMLnecessarilyMLtheMLvalueMLofMLtheMLfirm.
e) maximizeMLitsMLmarketMLshareMLevenMLatMLtheMLcostMLofMLprofit.

ANSWER:MLc
SECTIONMLREFERENCE:MLPrivateMLandMLPublicMLDecisions:MLAnMLEconomicMLViewMLDIFF
ICULTYMLLEVEL:MLEasy



13. AccordingMLtoMLtheMLtheoryMLofMLtheMLfirm,MLtheMLmanagement’sMLultimateMLobjectiveMLisMLto:
a) maximizeMLshort-termMLprofit,MLevenMLifMLthisMLsacrificesMLlong-termMLprofit.
b) maximizeMLtheMLvalueMLofMLtheMLfirm.
c) increaseMLproductionMLtoMLtheMLhighestMLpossibleMLlevel.
d) increaseMLtheMLmarketMLshareMLofMLtheMLfirm.
e) diversifyMLintoMLasMLmanyMLproductMLlinesMLasMLtheMLfirmMLcan.

ANSWER:MLb
SECTIONMLREFERENCE:MLPrivateMLandMLPublicMLDecisions:MLAnMLEconomicMLViewMLDIFF
ICULTYMLLEVEL:MLEasy



14. AMLcoffeeMLshopMLdecidesMLthatMLitMLwillMLincreaseMLitsMLmarketMLshareMLtoML55%MLbyMLtheMLendML
ofMLtheMLyearMLbyMLloweringMLtheMLpriceMLofMLaMLcupMLofMLcoffee.MLTheMLpriceMLcutMLwillMLcertain
lyMLresultMLinMLanMLincreaseMLinMLthe
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