Test Bank for Managerial Economics, 9th Edition by William F. Samuelson, Stephen G. Marks, Jay L. Zagorsky – Complete Chapter Coverage with Answers

TEST BANK FOR Managerial Economics, 9th Edition Will
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iam F. Samuelson, Stephen G. Marks, Jay L. Zagorsky
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File:dCh01;dCHAPTERd1:dIntroductiondtodEconomicdDecisiondMakingd

MULTIPLEdCHOICE

1. Managerialdeconomicsdcandbestdbeddefineddasdthe:
a) macroeconomicsdanddmicroeconomicsdfordmanagers.
b) studydofdeconomicdincentivesdondconsumerdbehaviordandddemand.
c) analysisdofdthedlabordmarketdthroughdthedbehaviordofdworkersdanddmanagers.
d) analysisdofdmajordmanagementddecisionsdusingdeconomicdtools.
e) studydofdthedstrategicdinteractiondbetweendfirmsdindadmarket.

ANSWER:dd
SECTIONdREFERENCE:dIntroductiondDI
FFICULTYdLEVEL:dEasy



2. Whichdofdthedfollowingdisdnotdonedofdthedstepsdindmanagerialddecisiondmaking?
a) Predictingdthedconsequencesdofdaddecision.
b) Exploringdthedalternativesdtodtheddecision.
c) Definingdthedproblemdanddthedobjectivesdofdtheddecision.
d) Negotiatingdadconsensusdtodimplementdtheddecision.
e) Performingdsensitivitydanalysis.

ANSWER:dd
SECTIONdREFERENCE:dSixdStepsdtodDecisiondMakingdDIFFICUL
TYdLEVEL:dEasy



3. Profitdmaximizationdisdandambiguousdguidedtoddecisiondmakingdindthedprivatedsectordbecause:
a) firmsdindthedprivatedsectordusuallyddodnotdaimdatdprofitdmaximization.
b) thedgoaldofdprofitdmaximizationdcontradictsdthedgoaldofdsatisfyingdthedfirm‘sdshareholders.
c) ofdthedpresencedofdriskdandduncertainty.
d) profit-maximizationdignoresdsocialdcostsdanddbenefits.
e) Nonedofdthedabovedanswersdisdcorrect.

ANSWER:dc
SECTIONdREFERENCE:dSixdStepsdtodDecisiondMakingdDIFFICUL
TYdLEVEL:dEasy




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,4. Whichdofdthedfollowingdisdtruedofdeconomicdmodels?
a) Modelsdaredtoodtheoreticaldtodbedapplicabledindrealdworldddecisions.
b) Modelsdarednotdusefuldbecauseduncertaintydpreventsdaccuratedforecasts.
c) Modelsdaredsimplifiedddescriptionsdofdprocesses,drelationships,dordotherdphenomena.
d) Modelsddescribedrealdworlddsituationsdindcompleteddetail.
e) Modelsdarednotdusefuldbecausedtheyddodnotdtakedintodaccountdcomplicatingdanddlessdi
mportantdfeaturesdofdadproblem.

ANSWER:dc
SECTIONdREFERENCE:dSixdStepsdtodDecisiondMakingdDIFFICUL
TYdLEVEL:dMedium



5. Whichdofdthedfollowingdcorrectlyddescribesdaddeterministicdeconomicdmodel?
a) Addeterministicdmodeldisdadmodeldfordwhichdthedoutcomedisdpredicteddwithdcertainty.
b) Addeterministicdmodeldcandonlydbeduseddtodexplaindshort-rundeconomicdphenomena.
c) Addeterministicdmodeldisdmostdusefuldindidentifyingdlong-termdtrends.
d) Addeterministicdmodeldisduseddindthedstudydofdnormativedeconomics.
e) Thedoutcomedofdaddeterministicdmodeldisdrandomdanddhasdprobabilitiesdattached.

ANSWER:da
SECTIONdREFERENCE:dSixdStepsdtodDecisiondMakingdDIFFICUL
TYdLEVEL:dEasy



6. Whichdofdthedfollowingdcorrectlydexplainsdadprobabilisticdmodel?
a) Adprobabilisticdmodeldgivesdaddescriptiondofdrealdworlddeconomicdphenomena.
b) Adprobabilisticdmodeldshowsdthedpossibilitydofdadrangedofdoutcomes.
c) Adprobabilisticdmodeldexaminesdthedchangesdindeconomicdvariablesdoverdadperioddofdtime.
d) Adprobabilisticdmodeldisdbaseddondvaluedjudgments.
e) Adprobabilisticdmodeldisduseddtodexplaindlong-rundeconomicdphenomena

ANSWER:db
SECTIONdREFERENCE:dSixdStepsdtodDecisiondMakingdDIFFICUL
TYdLEVEL:dEasy



7. Maximizingdprofitdbydenumeratingdthedprofitdoutcomesdofddifferentdcoursesdofdaction
a) Isdonlydapplicabledtodproblemsdwithdadsmalldnumberdofdalternatives.
b) Becomesdincreasinglydcostlydasdthednumberdofdchoicesdincrease.
c) Alwaysddiscoversdthedbestdpossibledchoice.



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, d) Providesdadusefuldshortcutdtodfindingdthedoptimaldchoice.
e) Answersdbdanddcdaredbothdcorrect.

ANSWER:db
SECTIONdREFERENCE:dSixdStepsdtodDecisiondMakingdDIFFICUL
TYdLEVEL:dMedium



8. Adbeveragesdcompanydwantsdtodlaunchdadnewddietdsodadaimeddatddiabeticsdanddhealth-
dconsciousdcustomers.dItdwilldusedad economicdmodeldtodidentifyditsdtargetdcustomers.
a) deterministic
b) dynamic
c) qualitative
d) stochastic
e) probabilistic

ANSWER:da
SECTIONdREFERENCE:dSixdStepsdtodDecisiondMakingdDIFFICUL
TYdLEVEL:dMedium



9. Givendthatdthedmarketdsharedofdadfirmddependsdondmanydunpredictabledfactors,dadfirmdwilldusedad
economicdmodeldtodestimatedthedmarketdsharedfordonedofditsdproducts.
a) deterministic
b) dynamic
c) qualitative
d) probabilistic
e) comparativedstatics

ANSWER:dd
SECTIONdREFERENCE:dSixdStepsdtodDecisiondMakingdDIFFICUL
TYdLEVEL:dMedium



10. Sensitivitydanalysisdisduseddbydadfirmdto:
a) analyzedthedimpactdofdadchangedindthedpricedofdthedgooddondtheddemanddfordthedgood.
b) examinedthedstaticdeffectsdofdandeconomicddecisiondondthedfirm‘sdprofitability.
c) analyzedthedsocialdcostsdanddbenefitsdofdandeconomicddecision.
d) examinedthedopportunitydcostsdofdandeconomicddecision.
e) examinedhowdandoptimalddecisiondisdaffecteddifdkeydeconomicdfactsdvary.

ANSWER:de
SECTIONdREFERENCE:dSixdStepsdtodDecisiondMaking



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, DIFFICULTYdLEVEL:dEasy



11. Adcosmeticsdcompanydisdconductingdadsecond-
yeardreviewdofdonedofditsdnewestdproducts.dThedmarketingddepartmentdexpectsdthatdthedfirmdwil
ldcontinuedtodearndprofitsdfromdthedsaledofdthedproductdindthedthirddyeardasditddiddindthedpastdtwod
years.dSeniordmanagement,dhowever,dfeelsdthatdthedprofitdprojectionsdwoulddvarydbaseddondoth
erdfactorsdsuchdasdthedpricedofdthedcompetitor'sdproducts,dthedactualdleveldofdsales,danddthedposs
ibilitydofdcostdreductions.dIndotherdwords,dthedseniordmanagementdisdundertakingd .
a) adsensitivitydanalysis
b) andenumerationdstudy
c) adbenefit-costdanalysis
d) adcontingentdvaluationdstudy
e) adstrategicdanalysis

ANSWER:da
SECTIONdREFERENCE:dSixdStepsdtodDecisiondMakingdDIFFICUL
TYdLEVEL:dMedium



12. Accordingdtodthedsatisficingdmodeldofdmanagementdbehavior,dthedgoaldofdadfirmdisdto:
a) satisfydcustomers,demployees,danddshareholders.
b) maximizedthedgaindtodsocietydanddnotdjustdtodshareholders.
c) achievedadsatisfactorydleveldofdperformancedagainstdadbenchmark.
d) maximizedsalesdrevenuedanddnotdnecessarilydthedvaluedofdthedfirm.
e) maximizeditsdmarketdsharedevendatdthedcostdofdprofit.

ANSWER:dc
SECTIONdREFERENCE:dPrivatedanddPublicdDecisions:dAndEconomicdViewdDIFFICULTY
dLEVEL:dEasy




13. Accordingdtodthedtheorydofdthedfirm,dthedmanagement‘sdultimatedobjectivedisdto:
a) maximizedshort-termdprofit,devendifdthisdsacrificesdlong-termdprofit.
b) maximizedthedvaluedofdthedfirm.
c) increasedproductiondtodthedhighestdpossibledlevel.
d) increasedthedmarketdsharedofdthedfirm.
e) diversifydintodasdmanydproductdlinesdasdthedfirmdcan.

ANSWER:db
SECTIONdREFERENCE:dPrivatedanddPublicdDecisions:dAndEconomicdViewdDIFFICULTY
dLEVEL:dEasy




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