MBA 701 Exam UPDATED Study Guide
QUESTIONS AND CORRECT ANSWERS
Accounting P - CORRECT ANSWERS
Supply Shifter - CORRECT ANSWERS Technology or government
regulations
Accounting Profit - CORRECT ANSWERS Total amount of money
taken in from sales minus the dollar cost of producing goods or services.
Changes in Demand - CORRECT ANSWERS Represented by a shift of
the demand curve
Total Revenue - CORRECT ANSWERS If elastic, can be increased by
decreasing the price
Marginal Net Benefits - CORRECT ANSWERS Marginal Benefit -
Marginal Cost
Implicit Costs - CORRECT ANSWERS
W in Supply Function - CORRECT ANSWERS Price of an input
Accounting Profit - CORRECT ANSWERS Revenue - Expenses
Bx in Supply Function - CORRECT ANSWERS Greater than zero
, Income Elasticity - CORRECT ANSWERS When less than zero, X is a
normal good
Law of Demand - CORRECT ANSWERS Quantity of a good consumers
are willing and able to purchase increases as the price falls
Excise Tax - CORRECT ANSWERS Tax on each unit of output sold.
Tax revenue is collected by the supplier
Changes in Quantity Supplied - CORRECT ANSWERS Represented by
a movement along the supply curve
Economic Profit - CORRECT ANSWERS Difference between total
revenue and opportunity cost.
Ax in Demand Function - CORRECT ANSWERS Less than zero
Managerial Control Variable - CORRECT ANSWERS Represented as Q
Px in Demand Function - CORRECT ANSWERS Price of good X
Market Supply Curve - CORRECT ANSWERS Indicates the total
quantity of a good that all producers would produce at each price, holding input
prices, technology, and other variables affecting supply constant.
Pr in Supply Function - CORRECT ANSWERS Price of technologically
related goods
QUESTIONS AND CORRECT ANSWERS
Accounting P - CORRECT ANSWERS
Supply Shifter - CORRECT ANSWERS Technology or government
regulations
Accounting Profit - CORRECT ANSWERS Total amount of money
taken in from sales minus the dollar cost of producing goods or services.
Changes in Demand - CORRECT ANSWERS Represented by a shift of
the demand curve
Total Revenue - CORRECT ANSWERS If elastic, can be increased by
decreasing the price
Marginal Net Benefits - CORRECT ANSWERS Marginal Benefit -
Marginal Cost
Implicit Costs - CORRECT ANSWERS
W in Supply Function - CORRECT ANSWERS Price of an input
Accounting Profit - CORRECT ANSWERS Revenue - Expenses
Bx in Supply Function - CORRECT ANSWERS Greater than zero
, Income Elasticity - CORRECT ANSWERS When less than zero, X is a
normal good
Law of Demand - CORRECT ANSWERS Quantity of a good consumers
are willing and able to purchase increases as the price falls
Excise Tax - CORRECT ANSWERS Tax on each unit of output sold.
Tax revenue is collected by the supplier
Changes in Quantity Supplied - CORRECT ANSWERS Represented by
a movement along the supply curve
Economic Profit - CORRECT ANSWERS Difference between total
revenue and opportunity cost.
Ax in Demand Function - CORRECT ANSWERS Less than zero
Managerial Control Variable - CORRECT ANSWERS Represented as Q
Px in Demand Function - CORRECT ANSWERS Price of good X
Market Supply Curve - CORRECT ANSWERS Indicates the total
quantity of a good that all producers would produce at each price, holding input
prices, technology, and other variables affecting supply constant.
Pr in Supply Function - CORRECT ANSWERS Price of technologically
related goods
