LSUS MBA 701 2 ACTUAL EXAM PAPER
2026 QUESTIONS WITH ANSWERS
GRADED A+
◍ Economics.
Answer: the study of how society manages its scarce resources
◍ Scarcity.
Answer: A situation in which unlimited wants exceed the limited resources
available to fulfill those wants
◍ Managerial economics.
Answer: The study of how to direct scarce resources in the way that most
efficiently achieves a managerial goal.
◍ strategic behavior.
Answer: self-interested behavior that takes into account the reactions of
others
◍ game theory.
Answer: the study of how people behave in strategic situations
◍ Supply Shifter.
Answer: Technology or government regulations
◍ quantitative methods.
Answer: methods that seek to obtain information about the social world that
is already in or can be converted to numeric form
◍ Changes in Demand.
Answer: Represented by a shift of the demand curve
◍ Managers.
Answer: The people responsible for supervising the use of an organization's
, resources to meet its goals
◍ firm.
Answer: an organization that uses resources to produce a product, which it
then sells
◍ Total Revenue when Elastic.
Answer: Can be increased by decreasing the price
◍ Marginal Net Benefits.
Answer: Marginal Benefit - Marginal Cost
◍ When Demand is Elastic.
Answer: Total Revenue rises when the price increases
◍ profit.
Answer: A financial gain, esp. the difference between the amount earned
and the amount spent in buying, operating, or producing something
◍ Accounting Profit.
Answer: Revenue - Expenses
◍ production function.
Answer: the relationship between quantity of inputs used to make a good
and the quantity of output of that good
◍ law of diminishing returns.
Answer: the principle that, at some point, adding more of a variable input,
such as labor, to the same amount of a fixed input, such as capital, will
cause the marginal product of the variable input to decline
◍ return to scale.
Answer: the relationship between changes in the scale of production and the
corresponding change in the amount of output
◍ Income Elasticity.
Answer: When less than zero, X is a normal good
◍ Price Ceiling.
2026 QUESTIONS WITH ANSWERS
GRADED A+
◍ Economics.
Answer: the study of how society manages its scarce resources
◍ Scarcity.
Answer: A situation in which unlimited wants exceed the limited resources
available to fulfill those wants
◍ Managerial economics.
Answer: The study of how to direct scarce resources in the way that most
efficiently achieves a managerial goal.
◍ strategic behavior.
Answer: self-interested behavior that takes into account the reactions of
others
◍ game theory.
Answer: the study of how people behave in strategic situations
◍ Supply Shifter.
Answer: Technology or government regulations
◍ quantitative methods.
Answer: methods that seek to obtain information about the social world that
is already in or can be converted to numeric form
◍ Changes in Demand.
Answer: Represented by a shift of the demand curve
◍ Managers.
Answer: The people responsible for supervising the use of an organization's
, resources to meet its goals
◍ firm.
Answer: an organization that uses resources to produce a product, which it
then sells
◍ Total Revenue when Elastic.
Answer: Can be increased by decreasing the price
◍ Marginal Net Benefits.
Answer: Marginal Benefit - Marginal Cost
◍ When Demand is Elastic.
Answer: Total Revenue rises when the price increases
◍ profit.
Answer: A financial gain, esp. the difference between the amount earned
and the amount spent in buying, operating, or producing something
◍ Accounting Profit.
Answer: Revenue - Expenses
◍ production function.
Answer: the relationship between quantity of inputs used to make a good
and the quantity of output of that good
◍ law of diminishing returns.
Answer: the principle that, at some point, adding more of a variable input,
such as labor, to the same amount of a fixed input, such as capital, will
cause the marginal product of the variable input to decline
◍ return to scale.
Answer: the relationship between changes in the scale of production and the
corresponding change in the amount of output
◍ Income Elasticity.
Answer: When less than zero, X is a normal good
◍ Price Ceiling.
