TEST BANK FOR Managerial Economics, 9th Edition Wi
7j 7j 7j 7j 7j 7j 7j7j
lliam F. Samuelson, Stephen G. Marks, Jay L. Zagorsk
7j 7j 7j 7j 7j 7j 7j 7j7j
y
File:7jCh01;7jCHAPTER7j1:7jIntroduction7jto7jEconomic7jDecision7jMaki
ng7jMULTIPLE7jCHOICE
1. Managerial7jeconomics7jcan7jbest7jbe7jdefined7jas7jthe:
a) macroeconomics7jand7jmicroeconomics7jfor7jmanagers.
b) study7jof7jeconomic7jincentives7jon7jconsumer7jbehavior7jand7jdemand.
c) analysis7jof7jthe7jlabor7jmarket7jthrough7jthe7jbehavior7jof7jworkers7jand7jmanagers.
d) analysis7jof7jmajor7jmanagement7jdecisions7jusing7jeconomic7jtools.
e) study7jof7jthe7jstrategic7jinteraction7jbetween7jfirms7jin7ja7jmarket.
ANSWER:7jd
SECTION7jREFERENCE:7jIntroduction7j
DIFFICULTY7jLEVEL:7jEasy
2. Which7jof7jthe7jfollowing7jis7jnot7jone7jof7jthe7jsteps7jin7jmanagerial7jdecision7jmaking?
a) Predicting7jthe7jconsequences7jof7ja7jdecision.
b) Exploring7jthe7jalternatives7jto7jthe7jdecision.
c) Defining7jthe7jproblem7jand7jthe7jobjectives7jof7jthe7jdecision.
d) Negotiating7ja7jconsensus7jto7jimplement7jthe7jdecision.
e) Performing7jsensitivity7janalysis.
ANSWER:7jd
SECTION7jREFERENCE:7jSix7jSteps7jto7jDecision7jMaking7jDIFFIC
ULTY7jLEVEL:7jEasy
3. Profit7jmaximization7jis7jan7jambiguous7jguide7jto7jdecision7jmaking7jin7jthe7jprivate7jsector7jbecaus
e:
a) firms7jin7jthe7jprivate7jsector7jusually7jdo7jnot7jaim7jat7jprofit7jmaximization.
b) the7jgoal7jof7jprofit7jmaximization7jcontradicts7jthe7jgoal7jof7jsatisfying7jthe7jfirm‘s7jshareholders.
c) of7jthe7jpresence7jof7jrisk7jand7juncertainty.
d) profit-maximization7jignores7jsocial7jcosts7jand7jbenefits.
e) None7jof7jthe7jabove7janswers7jis7jcorrect.
ANSWER:7jc
SECTION7jREFERENCE:7jSix7jSteps7jto7jDecision7jMaking7jDIFFIC
ULTY7jLEVEL:7jEasy
1-1
,4. Which7jof7jthe7jfollowing7jis7jtrue7jof7jeconomic7jmodels?
a) Models7jare7jtoo7jtheoretical7jto7jbe7japplicable7jin7jreal7jworld7jdecisions.
b) Models7jare7jnot7juseful7jbecause7juncertainty7jprevents7jaccurate7jforecasts.
c) Models7jare7jsimplified7jdescriptions7jof7jprocesses,7jrelationships,7jor7jother7jphenomena.
d) Models7jdescribe7jreal7jworld7jsituations7jin7jcomplete7jdetail.
e) Models7jare7jnot7juseful7jbecause7jthey7jdo7jnot7jtake7jinto7jaccount7jcomplicating7jan
d7jless7jimportant7jfeatures7jof7ja7jproblem.
ANSWER:7jc
SECTION7jREFERENCE:7jSix7jSteps7jto7jDecision7jMaking7jDIFFIC
ULTY7jLEVEL:7jMedium
5. Which7jof7jthe7jfollowing7jcorrectly7jdescribes7ja7jdeterministic7jeconomic7jmodel?
a) A7jdeterministic7jmodel7jis7ja7jmodel7jfor7jwhich7jthe7joutcome7jis7jpredicted7jwith7jcertainty.
b) A7jdeterministic7jmodel7jcan7jonly7jbe7jused7jto7jexplain7jshort-run7jeconomic7jphenomena.
c) A7jdeterministic7jmodel7jis7jmost7juseful7jin7jidentifying7jlong-term7jtrends.
d) A7jdeterministic7jmodel7jis7jused7jin7jthe7jstudy7jof7jnormative7jeconomics.
e) The7joutcome7jof7ja7jdeterministic7jmodel7jis7jrandom7jand7jhas7jprobabilities7jattached.
ANSWER:7ja
SECTION7jREFERENCE:7jSix7jSteps7jto7jDecision7jMaking7jDIFFIC
ULTY7jLEVEL:7jEasy
6. Which7jof7jthe7jfollowing7jcorrectly7jexplains7ja7jprobabilistic7jmodel?
a) A7jprobabilistic7jmodel7jgives7ja7jdescription7jof7jreal7jworld7jeconomic7jphenomena.
b) A7jprobabilistic7jmodel7jshows7jthe7jpossibility7jof7ja7jrange7jof7joutcomes.
c) A7jprobabilistic7jmodel7jexamines7jthe7jchanges7jin7jeconomic7jvariables7jover7ja7jperiod7jof7jtim
e.
d) A7jprobabilistic7jmodel7jis7jbased7jon7jvalue7jjudgments.
e) A7jprobabilistic7jmodel7jis7jused7jto7jexplain7jlong-run7jeconomic7jphenomena
ANSWER:7jb
SECTION7jREFERENCE:7jSix7jSteps7jto7jDecision7jMaking7jDIFFIC
ULTY7jLEVEL:7jEasy
7. Maximizing7jprofit7jby7jenumerating7jthe7jprofit7joutcomes7jof7jdifferent7jcourses7jof7jaction
a) Is7jonly7japplicable7jto7jproblems7jwith7ja7jsmall7jnumber7jof7jalternatives.
b) Becomes7jincreasingly7jcostly7jas7jthe7jnumber7jof7jchoices7jincrease.
c) Always7jdiscovers7jthe7jbest7jpossible7jchoice.
1-2
, d) Provides7ja7juseful7jshortcut7jto7jfinding7jthe7joptimal7jchoice.
e) Answers7jb7jand7jc7jare7jboth7jcorrect.
ANSWER:7jb
SECTION7jREFERENCE:7jSix7jSteps7jto7jDecision7jMaking7jDIFFIC
ULTY7jLEVEL:7jMedium
8. A7jbeverages7jcompany7jwants7jto7jlaunch7ja7jnew7jdiet7jsoda7jaimed7jat7jdiabetics7jand7jhea
lth-7jconscious7jcustomers.7jIt7jwill7juse7ja7j
economic7jmodel7jto7jidentify7jits7jtarget7jcustome
rs.
a) deterministic
b) dynamic
c) qualitative
d) stochastic
e) probabilistic
ANSWER:7ja
SECTION7jREFERENCE:7jSix7jSteps7jto7jDecision7jMaking7jDIFFIC
ULTY7jLEVEL:7jMedium
9. Given7jthat7jthe7jmarket7jshare7jof7ja7jfirm7jdepends7jon7jmany7junpredictable7jfactors,7ja7jfirm7j
will7juse7ja7j economic7jmodel7jto7jestimate7jthe7jmarket7jshare7jfor7jone7jof7jits7jproducts.
a) deterministic
b) dynamic
c) qualitative
d) probabilistic
e) comparative7jstatics
ANSWER:7jd
SECTION7jREFERENCE:7jSix7jSteps7jto7jDecision7jMaking7jDIFFIC
ULTY7jLEVEL:7jMedium
10. Sensitivity7janalysis7jis7jused7jby7ja7jfirm7jto:
a) analyze7jthe7jimpact7jof7ja7jchange7jin7jthe7jprice7jof7jthe7jgood7jon7jthe7jdemand7jfor7jthe7jgood.
b) examine7jthe7jstatic7jeffects7jof7jan7jeconomic7jdecision7jon7jthe7jfirm‘s7jprofitability.
c) analyze7jthe7jsocial7jcosts7jand7jbenefits7jof7jan7jeconomic7jdecision.
d) examine7jthe7jopportunity7jcosts7jof7jan7jeconomic7jdecision.
e) examine7jhow7jan7joptimal7jdecision7jis7jaffected7jif7jkey7jeconomic7jfacts7jvary.
ANSWER:7je
SECTION7jREFERENCE:7jSix7jSteps7jto7jDecision7jMaking
1-3
, DIFFICULTY7jLEVEL:7jEasy
11. A7jcosmetics7jcompany7jis7jconducting7ja7jsecond-
year7jreview7jof7jone7jof7jits7jnewest7jproducts.7jThe7jmarketing7jdepartment7jexpects7jthat7jthe7j
firm7jwill7jcontinue7jto7jearn7jprofits7jfrom7jthe7jsale7jof7jthe7jproduct7jin7jthe7jthird7jyear7jas7jit7j
did7jin7jthe7jpast7jtwo7jyears.7jSenior7jmanagement,7jhowever,7jfeels7jthat7jthe7jprofit7jprojectio
ns7jwould7jvary7jbased7jon7jother7jfactors7jsuch7jas7jthe7jprice7jof7jthe7jcompetitor's7jproducts,7jt
he7jactual7jlevel7jof7jsales,7jand7jthe7jpossibility7jof7jcost7jreductions.7jIn7jother7jwords,7jthe7jse
nior7jmanagement7jis7jundertaking7j .
a) a7jsensitivity7janalysis
b) an7jenumeration7jstudy
c) a7jbenefit-cost7janalysis
d) a7jcontingent7jvaluation7jstudy
e) a7jstrategic7janalysis
ANSWER:7ja
SECTION7jREFERENCE:7jSix7jSteps7jto7jDecision7jMaking7jDIFFIC
ULTY7jLEVEL:7jMedium
12. According7jto7jthe7jsatisficing7jmodel7jof7jmanagement7jbehavior,7jthe7jgoal7jof7ja7jfirm7jis7jto:
a) satisfy7jcustomers,7jemployees,7jand7jshareholders.
b) maximize7jthe7jgain7jto7jsociety7jand7jnot7jjust7jto7jshareholders.
c) achieve7ja7jsatisfactory7jlevel7jof7jperformance7jagainst7ja7jbenchmark.
d) maximize7jsales7jrevenue7jand7jnot7jnecessarily7jthe7jvalue7jof7jthe7jfirm.
e) maximize7jits7jmarket7jshare7jeven7jat7jthe7jcost7jof7jprofit.
ANSWER:7jc
SECTION7jREFERENCE:7jPrivate7jand7jPublic7jDecisions:7jAn7jEconomic7jView7jDIFFICU
LTY7jLEVEL:7jEasy
13. According7jto7jthe7jtheory7jof7jthe7jfirm,7jthe7jmanagement‘s7jultimate7jobjective7jis7jto:
a) maximize7jshort-term7jprofit,7jeven7jif7jthis7jsacrifices7jlong-term7jprofit.
b) maximize7jthe7jvalue7jof7jthe7jfirm.
c) increase7jproduction7jto7jthe7jhighest7jpossible7jlevel.
d) increase7jthe7jmarket7jshare7jof7jthe7jfirm.
e) diversify7jinto7jas7jmany7jproduct7jlines7jas7jthe7jfirm7jcan.
ANSWER:7jb
SECTION7jREFERENCE:7jPrivate7jand7jPublic7jDecisions:7jAn7jEconomic7jView7jDIFFICU
LTY7jLEVEL:7jEasy
1-4
7j 7j 7j 7j 7j 7j 7j7j
lliam F. Samuelson, Stephen G. Marks, Jay L. Zagorsk
7j 7j 7j 7j 7j 7j 7j 7j7j
y
File:7jCh01;7jCHAPTER7j1:7jIntroduction7jto7jEconomic7jDecision7jMaki
ng7jMULTIPLE7jCHOICE
1. Managerial7jeconomics7jcan7jbest7jbe7jdefined7jas7jthe:
a) macroeconomics7jand7jmicroeconomics7jfor7jmanagers.
b) study7jof7jeconomic7jincentives7jon7jconsumer7jbehavior7jand7jdemand.
c) analysis7jof7jthe7jlabor7jmarket7jthrough7jthe7jbehavior7jof7jworkers7jand7jmanagers.
d) analysis7jof7jmajor7jmanagement7jdecisions7jusing7jeconomic7jtools.
e) study7jof7jthe7jstrategic7jinteraction7jbetween7jfirms7jin7ja7jmarket.
ANSWER:7jd
SECTION7jREFERENCE:7jIntroduction7j
DIFFICULTY7jLEVEL:7jEasy
2. Which7jof7jthe7jfollowing7jis7jnot7jone7jof7jthe7jsteps7jin7jmanagerial7jdecision7jmaking?
a) Predicting7jthe7jconsequences7jof7ja7jdecision.
b) Exploring7jthe7jalternatives7jto7jthe7jdecision.
c) Defining7jthe7jproblem7jand7jthe7jobjectives7jof7jthe7jdecision.
d) Negotiating7ja7jconsensus7jto7jimplement7jthe7jdecision.
e) Performing7jsensitivity7janalysis.
ANSWER:7jd
SECTION7jREFERENCE:7jSix7jSteps7jto7jDecision7jMaking7jDIFFIC
ULTY7jLEVEL:7jEasy
3. Profit7jmaximization7jis7jan7jambiguous7jguide7jto7jdecision7jmaking7jin7jthe7jprivate7jsector7jbecaus
e:
a) firms7jin7jthe7jprivate7jsector7jusually7jdo7jnot7jaim7jat7jprofit7jmaximization.
b) the7jgoal7jof7jprofit7jmaximization7jcontradicts7jthe7jgoal7jof7jsatisfying7jthe7jfirm‘s7jshareholders.
c) of7jthe7jpresence7jof7jrisk7jand7juncertainty.
d) profit-maximization7jignores7jsocial7jcosts7jand7jbenefits.
e) None7jof7jthe7jabove7janswers7jis7jcorrect.
ANSWER:7jc
SECTION7jREFERENCE:7jSix7jSteps7jto7jDecision7jMaking7jDIFFIC
ULTY7jLEVEL:7jEasy
1-1
,4. Which7jof7jthe7jfollowing7jis7jtrue7jof7jeconomic7jmodels?
a) Models7jare7jtoo7jtheoretical7jto7jbe7japplicable7jin7jreal7jworld7jdecisions.
b) Models7jare7jnot7juseful7jbecause7juncertainty7jprevents7jaccurate7jforecasts.
c) Models7jare7jsimplified7jdescriptions7jof7jprocesses,7jrelationships,7jor7jother7jphenomena.
d) Models7jdescribe7jreal7jworld7jsituations7jin7jcomplete7jdetail.
e) Models7jare7jnot7juseful7jbecause7jthey7jdo7jnot7jtake7jinto7jaccount7jcomplicating7jan
d7jless7jimportant7jfeatures7jof7ja7jproblem.
ANSWER:7jc
SECTION7jREFERENCE:7jSix7jSteps7jto7jDecision7jMaking7jDIFFIC
ULTY7jLEVEL:7jMedium
5. Which7jof7jthe7jfollowing7jcorrectly7jdescribes7ja7jdeterministic7jeconomic7jmodel?
a) A7jdeterministic7jmodel7jis7ja7jmodel7jfor7jwhich7jthe7joutcome7jis7jpredicted7jwith7jcertainty.
b) A7jdeterministic7jmodel7jcan7jonly7jbe7jused7jto7jexplain7jshort-run7jeconomic7jphenomena.
c) A7jdeterministic7jmodel7jis7jmost7juseful7jin7jidentifying7jlong-term7jtrends.
d) A7jdeterministic7jmodel7jis7jused7jin7jthe7jstudy7jof7jnormative7jeconomics.
e) The7joutcome7jof7ja7jdeterministic7jmodel7jis7jrandom7jand7jhas7jprobabilities7jattached.
ANSWER:7ja
SECTION7jREFERENCE:7jSix7jSteps7jto7jDecision7jMaking7jDIFFIC
ULTY7jLEVEL:7jEasy
6. Which7jof7jthe7jfollowing7jcorrectly7jexplains7ja7jprobabilistic7jmodel?
a) A7jprobabilistic7jmodel7jgives7ja7jdescription7jof7jreal7jworld7jeconomic7jphenomena.
b) A7jprobabilistic7jmodel7jshows7jthe7jpossibility7jof7ja7jrange7jof7joutcomes.
c) A7jprobabilistic7jmodel7jexamines7jthe7jchanges7jin7jeconomic7jvariables7jover7ja7jperiod7jof7jtim
e.
d) A7jprobabilistic7jmodel7jis7jbased7jon7jvalue7jjudgments.
e) A7jprobabilistic7jmodel7jis7jused7jto7jexplain7jlong-run7jeconomic7jphenomena
ANSWER:7jb
SECTION7jREFERENCE:7jSix7jSteps7jto7jDecision7jMaking7jDIFFIC
ULTY7jLEVEL:7jEasy
7. Maximizing7jprofit7jby7jenumerating7jthe7jprofit7joutcomes7jof7jdifferent7jcourses7jof7jaction
a) Is7jonly7japplicable7jto7jproblems7jwith7ja7jsmall7jnumber7jof7jalternatives.
b) Becomes7jincreasingly7jcostly7jas7jthe7jnumber7jof7jchoices7jincrease.
c) Always7jdiscovers7jthe7jbest7jpossible7jchoice.
1-2
, d) Provides7ja7juseful7jshortcut7jto7jfinding7jthe7joptimal7jchoice.
e) Answers7jb7jand7jc7jare7jboth7jcorrect.
ANSWER:7jb
SECTION7jREFERENCE:7jSix7jSteps7jto7jDecision7jMaking7jDIFFIC
ULTY7jLEVEL:7jMedium
8. A7jbeverages7jcompany7jwants7jto7jlaunch7ja7jnew7jdiet7jsoda7jaimed7jat7jdiabetics7jand7jhea
lth-7jconscious7jcustomers.7jIt7jwill7juse7ja7j
economic7jmodel7jto7jidentify7jits7jtarget7jcustome
rs.
a) deterministic
b) dynamic
c) qualitative
d) stochastic
e) probabilistic
ANSWER:7ja
SECTION7jREFERENCE:7jSix7jSteps7jto7jDecision7jMaking7jDIFFIC
ULTY7jLEVEL:7jMedium
9. Given7jthat7jthe7jmarket7jshare7jof7ja7jfirm7jdepends7jon7jmany7junpredictable7jfactors,7ja7jfirm7j
will7juse7ja7j economic7jmodel7jto7jestimate7jthe7jmarket7jshare7jfor7jone7jof7jits7jproducts.
a) deterministic
b) dynamic
c) qualitative
d) probabilistic
e) comparative7jstatics
ANSWER:7jd
SECTION7jREFERENCE:7jSix7jSteps7jto7jDecision7jMaking7jDIFFIC
ULTY7jLEVEL:7jMedium
10. Sensitivity7janalysis7jis7jused7jby7ja7jfirm7jto:
a) analyze7jthe7jimpact7jof7ja7jchange7jin7jthe7jprice7jof7jthe7jgood7jon7jthe7jdemand7jfor7jthe7jgood.
b) examine7jthe7jstatic7jeffects7jof7jan7jeconomic7jdecision7jon7jthe7jfirm‘s7jprofitability.
c) analyze7jthe7jsocial7jcosts7jand7jbenefits7jof7jan7jeconomic7jdecision.
d) examine7jthe7jopportunity7jcosts7jof7jan7jeconomic7jdecision.
e) examine7jhow7jan7joptimal7jdecision7jis7jaffected7jif7jkey7jeconomic7jfacts7jvary.
ANSWER:7je
SECTION7jREFERENCE:7jSix7jSteps7jto7jDecision7jMaking
1-3
, DIFFICULTY7jLEVEL:7jEasy
11. A7jcosmetics7jcompany7jis7jconducting7ja7jsecond-
year7jreview7jof7jone7jof7jits7jnewest7jproducts.7jThe7jmarketing7jdepartment7jexpects7jthat7jthe7j
firm7jwill7jcontinue7jto7jearn7jprofits7jfrom7jthe7jsale7jof7jthe7jproduct7jin7jthe7jthird7jyear7jas7jit7j
did7jin7jthe7jpast7jtwo7jyears.7jSenior7jmanagement,7jhowever,7jfeels7jthat7jthe7jprofit7jprojectio
ns7jwould7jvary7jbased7jon7jother7jfactors7jsuch7jas7jthe7jprice7jof7jthe7jcompetitor's7jproducts,7jt
he7jactual7jlevel7jof7jsales,7jand7jthe7jpossibility7jof7jcost7jreductions.7jIn7jother7jwords,7jthe7jse
nior7jmanagement7jis7jundertaking7j .
a) a7jsensitivity7janalysis
b) an7jenumeration7jstudy
c) a7jbenefit-cost7janalysis
d) a7jcontingent7jvaluation7jstudy
e) a7jstrategic7janalysis
ANSWER:7ja
SECTION7jREFERENCE:7jSix7jSteps7jto7jDecision7jMaking7jDIFFIC
ULTY7jLEVEL:7jMedium
12. According7jto7jthe7jsatisficing7jmodel7jof7jmanagement7jbehavior,7jthe7jgoal7jof7ja7jfirm7jis7jto:
a) satisfy7jcustomers,7jemployees,7jand7jshareholders.
b) maximize7jthe7jgain7jto7jsociety7jand7jnot7jjust7jto7jshareholders.
c) achieve7ja7jsatisfactory7jlevel7jof7jperformance7jagainst7ja7jbenchmark.
d) maximize7jsales7jrevenue7jand7jnot7jnecessarily7jthe7jvalue7jof7jthe7jfirm.
e) maximize7jits7jmarket7jshare7jeven7jat7jthe7jcost7jof7jprofit.
ANSWER:7jc
SECTION7jREFERENCE:7jPrivate7jand7jPublic7jDecisions:7jAn7jEconomic7jView7jDIFFICU
LTY7jLEVEL:7jEasy
13. According7jto7jthe7jtheory7jof7jthe7jfirm,7jthe7jmanagement‘s7jultimate7jobjective7jis7jto:
a) maximize7jshort-term7jprofit,7jeven7jif7jthis7jsacrifices7jlong-term7jprofit.
b) maximize7jthe7jvalue7jof7jthe7jfirm.
c) increase7jproduction7jto7jthe7jhighest7jpossible7jlevel.
d) increase7jthe7jmarket7jshare7jof7jthe7jfirm.
e) diversify7jinto7jas7jmany7jproduct7jlines7jas7jthe7jfirm7jcan.
ANSWER:7jb
SECTION7jREFERENCE:7jPrivate7jand7jPublic7jDecisions:7jAn7jEconomic7jView7jDIFFICU
LTY7jLEVEL:7jEasy
1-4
