TEST BANK FOR Managerial Economics, 9th Edition William F. Samuelson, Stephen G. Marks, Jay L. Zagorsky Chapter 1-18

TEST BANK FOR
Managerial Economics, 9th Edition William F. Samuelson, Stephen G.
Marks, Jay L. Zagorsky
Chapter 1-18




File:TCh01;TCHAPTERT1:TIntroductionTtoTEconomicTDecisionTMaki

ngTMULTIPLETCHOICE

1. ManagerialTeconomicsTcanTbestTbeTdefinedTasTthe:
a) macroeconomicsTandTmicroeconomicsTforTmanagers.
b) studyTofTeconomicTincentivesTonTconsumerTbehaviorTandTdemand.
c) analysisTofTtheTlaborTmarketTthroughTtheTbehaviorTofTworkersTandTmanagers.
d) analysisTofTmajorTmanagementTdecisionsTusingTeconomicTtools.
e) studyTofTtheTstrategicTinteractionTbetweenTfirmsTinTaTmarket.

ANSWER:Td
SECTIONTREFERENCE:TIntroductionT
DIFFICULTYTLEVEL:TEasy



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,2. WhichTofTtheTfollowingTisTnotToneTofTtheTstepsTinTmanagerialTdecisionTmaking?
a) PredictingTtheTconsequencesTofTaTdecision.
b) ExploringTtheTalternativesTtoTtheTdecision.
c) DefiningTtheTproblemTandTtheTobjectivesTofTtheTdecision.
d) NegotiatingTaTconsensusTtoTimplementTtheTdecision.
e) PerformingTsensitivityTanalysis.

ANSWER:Td
SECTIONTREFERENCE:TSixTStepsTtoTDecisionTMakingTDIFFIC
ULTYTLEVEL:TEasy



3. ProfitTmaximizationTisTanTambiguousTguideTtoTdecisionTmakingTinTtheTprivateTsectorTbecause
:
a) firmsTinTtheTprivateTsectorTusuallyTdoTnotTaimTatTprofitTmaximization.
b) theTgoalTofTprofitTmaximizationTcontradictsTtheTgoalTofTsatisfyingTtheTfirm‘sTshareholders.
c) ofTtheTpresenceTofTriskTandTuncertainty.
d) profit-maximizationTignoresTsocialTcostsTandTbenefits.
e) NoneTofTtheTaboveTanswersTisTcorrect.

ANSWER:Tc
SECTIONTREFERENCE:TSixTStepsTtoTDecisionTMakingTDIFFIC
ULTYTLEVEL:TEasy




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,4. WhichTofTtheTfollowingTisTtrueTofTeconomicTmodels?
a) ModelsTareTtooTtheoreticalTtoTbeTapplicableTinTrealTworldTdecisions.
b) ModelsTareTnotTusefulTbecauseTuncertaintyTpreventsTaccurateTforecasts.
c) ModelsTareTsimplifiedTdescriptionsTofTprocesses,Trelationships,TorTotherTphenomena.
d) ModelsTdescribeTrealTworldTsituationsTinTcompleteTdetail.
e) ModelsTareTnotTusefulTbecauseTtheyTdoTnotTtakeTintoTaccountTcomplicatingTand
TlessTimportantTfeaturesTofTaTproblem.


ANSWER:Tc
SECTIONTREFERENCE:TSixTStepsTtoTDecisionTMakingTDIFFIC
ULTYTLEVEL:TMedium



5. WhichTofTtheTfollowingTcorrectlyTdescribesTaTdeterministicTeconomicTmodel?
a) ATdeterministicTmodelTisTaTmodelTforTwhichTtheToutcomeTisTpredictedTwithTcertainty.
b) ATdeterministicTmodelTcanTonlyTbeTusedTtoTexplainTshort-runTeconomicTphenomena.
c) ATdeterministicTmodelTisTmostTusefulTinTidentifyingTlong-termTtrends.
d) ATdeterministicTmodelTisTusedTinTtheTstudyTofTnormativeTeconomics.
e) TheToutcomeTofTaTdeterministicTmodelTisTrandomTandThasTprobabilitiesTattached.

ANSWER:Ta
SECTIONTREFERENCE:TSixTStepsTtoTDecisionTMakingTDIFFIC
ULTYTLEVEL:TEasy



6. WhichTofTtheTfollowingTcorrectlyTexplainsTaTprobabilisticTmodel?
a) ATprobabilisticTmodelTgivesTaTdescriptionTofTrealTworldTeconomicTphenomena.
b) ATprobabilisticTmodelTshowsTtheTpossibilityTofTaTrangeTofToutcomes.
c) ATprobabilisticTmodelTexaminesTtheTchangesTinTeconomicTvariablesToverTaTperiodTofTtime.
d) ATprobabilisticTmodelTisTbasedTonTvalueTjudgments.
e) ATprobabilisticTmodelTisTusedTtoTexplainTlong-runTeconomicTphenomena

ANSWER:Tb
SECTIONTREFERENCE:TSixTStepsTtoTDecisionTMakingTDIFFIC
ULTYTLEVEL:TEasy



7. MaximizingTprofitTbyTenumeratingTtheTprofitToutcomesTofTdifferentTcoursesTofTaction
a) IsTonlyTapplicableTtoTproblemsTwithTaTsmallTnumberTofTalternatives.
b) BecomesTincreasinglyTcostlyTasTtheTnumberTofTchoicesTincrease.
c) AlwaysTdiscoversTtheTbestTpossibleTchoice.



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, d) ProvidesTaTusefulTshortcutTtoTfindingTtheToptimalTchoice.
e) AnswersTbTandTcTareTbothTcorrect.

ANSWER:Tb
SECTIONTREFERENCE:TSixTStepsTtoTDecisionTMakingTDIFFIC
ULTYTLEVEL:TMedium



8. ATbeveragesTcompanyTwantsTtoTlaunchTaTnewTdietTsodaTaimedTatTdiabeticsTandThealt
h-TconsciousTcustomers.TItTwillTuseTaT
economicTmodelTtoTidentifyTitsTtargetTcustome
rs.
a) deterministic
b) dynamic
c) qualitative
d) stochastic
e) probabilistic

ANSWER:Ta
SECTIONTREFERENCE:TSixTStepsTtoTDecisionTMakingTDIFFIC
ULTYTLEVEL:TMedium



9. GivenTthatTtheTmarketTshareTofTaTfirmTdependsTonTmanyTunpredictableTfactors,TaTfirmTw
illTuseTaT economicTmodelTtoTestimateTtheTmarketTshareTforToneTofTitsTproducts.
a) deterministic
b) dynamic
c) qualitative
d) probabilistic
e) comparativeTstatics

ANSWER:Td
SECTIONTREFERENCE:TSixTStepsTtoTDecisionTMakingTDIFFIC
ULTYTLEVEL:TMedium



10. SensitivityTanalysisTisTusedTbyTaTfirmTto:
a) analyzeTtheTimpactTofTaTchangeTinTtheTpriceTofTtheTgoodTonTtheTdemandTforTtheTgood.
b) examineTtheTstaticTeffectsTofTanTeconomicTdecisionTonTtheTfirm‘sTprofitability.
c) analyzeTtheTsocialTcostsTandTbenefitsTofTanTeconomicTdecision.
d) examineTtheTopportunityTcostsTofTanTeconomicTdecision.
e) examineThowTanToptimalTdecisionTisTaffectedTifTkeyTeconomicTfactsTvary.

ANSWER:Te
SECTIONTREFERENCE:TSixTStepsTtoTDecisionTMaking
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