UL ECON528 - Exam 1 QUESTIONS WITH ANSWERS

UL ECON528 - Exam 1 QUESTIONS WITH
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ANSWERS

Managerial economics is best defined as the economic study of -
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CORRECT ANSWERS ✔✔How businesses can decide on the best use
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of scarce resources
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Managerial economics: - CORRECT ANSWERS ✔✔Helps managers
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make decisions in the face of scarcity
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Microeconomics includes the study of the - CORRECT ANSWERS |\ |\ |\ |\ |\ |\ |\ |\ |\



✔✔Choices made by individuals and businesses |\ |\ |\ |\ |\




The form of economics most relevant to managerial decision-making
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within the firm is - CORRECT ANSWERS ✔✔Microeconomics
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CEOs should focus on - CORRECT ANSWERS ✔✔Maximizing firm
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profits


Managerial economics generally refers to the integration of economic
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theory with business - CORRECT ANSWERS ✔✔Practice
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, A managerial decision is not profitable if - CORRECT ANSWERS ✔✔It
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increases costs more than revenue |\ |\ |\ |\




(T/F) According to the profit maximization goal, the firm should attempt
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to maximize short-run profits since there is too much uncertainty
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associated with long-run profits - CORRECT ANSWERS ✔✔False
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Unlike an accountant, an economist measures costs on a ______ basis -
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CORRECT ANSWERS ✔✔Replacement
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When an economist uses the term "cost" referring to a firm, the
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economist refers to the - CORRECT ANSWERS ✔✔Opportunity cost of
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producing a good or service, which includes both implicit and explicit
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cost


Accounting consts - CORRECT ANSWERS ✔✔Are historical costs
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A firm earns a normal profit when its total revenues just offset both the
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______ cost and ______ cost - CORRECT ANSWERS ✔✔Accounting;
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opportunity


If Melissa owns a software company that incurs no fixed costs, then -
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CORRECT ANSWERS ✔✔Her total cost equals her total variable cost
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