Page | 1
Click here for more: Scholarsnexus - Stuvia US
Managerial Economics Questions with
Detailed Verified Answers (100% Correct
Answers) /Already Graded A+
The best definition of economics is
Ans: how choices are made under conditions of scarcity
Managerial economics is best defined as the economic study of
Ans: how businesses can decide on the best use of scarce resources
Select the group that best represents the basic factors of production.
Ans: land, labor, capital, entrepreneurship
Which of the following is the best example of "what goods and
services should be produced?"
,Page | 2
Click here for more: Scholarsnexus - Stuvia US
Ans: the production of SUVs versus the production of sub-compact
cars
Opportunity cost is best defined as
Ans: the amount given up when choosing one activity over the next
best alternative.
The best example of an economic goal of a firm is
Ans: increasing shareholder wealth.
A large corporation's profit objective may not be profit or wealth
maximization, because
Ans: 1. management is more interested in maximizing its own
income.
2. stockholders have little power in corporate decision making.
3. managers are overly concerned with their own survival and may
not take all prudent risks.
*All the above
, Page | 3
Click here for more: Scholarsnexus - Stuvia US
A firm's "normal profit" is best characterized by the
Ans: amount of profit a firm could earn in its next best alternative
activity.
Accounting costs
Ans: are historical costs
Unlike an accountant, an economist measures costs on a(n)
________ basis.
Ans: Replacement
The demand curve illustrates the fact that consumers:
Ans: tend to purchase more of a good as its price falls.
Click here for more: Scholarsnexus - Stuvia US
Managerial Economics Questions with
Detailed Verified Answers (100% Correct
Answers) /Already Graded A+
The best definition of economics is
Ans: how choices are made under conditions of scarcity
Managerial economics is best defined as the economic study of
Ans: how businesses can decide on the best use of scarce resources
Select the group that best represents the basic factors of production.
Ans: land, labor, capital, entrepreneurship
Which of the following is the best example of "what goods and
services should be produced?"
,Page | 2
Click here for more: Scholarsnexus - Stuvia US
Ans: the production of SUVs versus the production of sub-compact
cars
Opportunity cost is best defined as
Ans: the amount given up when choosing one activity over the next
best alternative.
The best example of an economic goal of a firm is
Ans: increasing shareholder wealth.
A large corporation's profit objective may not be profit or wealth
maximization, because
Ans: 1. management is more interested in maximizing its own
income.
2. stockholders have little power in corporate decision making.
3. managers are overly concerned with their own survival and may
not take all prudent risks.
*All the above
, Page | 3
Click here for more: Scholarsnexus - Stuvia US
A firm's "normal profit" is best characterized by the
Ans: amount of profit a firm could earn in its next best alternative
activity.
Accounting costs
Ans: are historical costs
Unlike an accountant, an economist measures costs on a(n)
________ basis.
Ans: Replacement
The demand curve illustrates the fact that consumers:
Ans: tend to purchase more of a good as its price falls.
