ECON 528 Final Exam With complete solu on RATED A+
2025/2026 NEWEST
The best defini on of economics is:
A) how goods and services are produced.
B) how choices are made under condi ons of scarcity.
C) how businesses maximize profits.
D) how money is used. - Ans B) how choices are made under condi ons of scarcity
Managerial economics is best defined as the economic study of:
A) how businesses can decide on the best use of scarce resources.
B) how businesses can make the most profits.
C) how businesses can sell the most products.
D) how businesses can operate at the lowest costs. - Ans A) how businesses can decide on the
best use of scarce resources
A firm's managers are constrained by:
A) workers.
B) government.
C) consumers.
D) All three. - Ans D) All three
Most private firms seek to:
A) minimize headcount.
B) maximize revenue.
C) maximize employee salaries.
, D) maximize profit. - Ans D) maximize profit
Einstein was quoted saying "Everything should be made as simple as possible, but not simpler."
When it comes to economic models this means that:
A) models shouldn't be too simple.
B) models should have a level of abstrac on appropriate to the topic inves gated.
C) models shouldn't be too complex.
D) All of these. - Ans D) All of these
Economic models are only useful in analyzing government policy.
A) False, economic models can be used to predict individual and firm behavior.
B) False, economic models are not even useful in analyzing government policy.
C) True, individuals are irra onal and therefore economic models are useless.
D) True, economists only model those ques ons for which they are hired. - Ans A) False,
economic models can used to predict individual and firm behavior.
Economic models are most useful in:
A) genera ng untestable hypotheses.
B) explaining the future with the past.
C) predic ng the direc on of the stock market.
D) explaining outcomes resul ng from management decisions. - Ans D) explaining outcomes
resul ng from management decisions.
Scarcity:
A) used to exist everywhere but has been eliminated in advanced economies.
B) applies only to people living in poverty.
C) is the inability to sa sfy all our wants.
2025/2026 NEWEST
The best defini on of economics is:
A) how goods and services are produced.
B) how choices are made under condi ons of scarcity.
C) how businesses maximize profits.
D) how money is used. - Ans B) how choices are made under condi ons of scarcity
Managerial economics is best defined as the economic study of:
A) how businesses can decide on the best use of scarce resources.
B) how businesses can make the most profits.
C) how businesses can sell the most products.
D) how businesses can operate at the lowest costs. - Ans A) how businesses can decide on the
best use of scarce resources
A firm's managers are constrained by:
A) workers.
B) government.
C) consumers.
D) All three. - Ans D) All three
Most private firms seek to:
A) minimize headcount.
B) maximize revenue.
C) maximize employee salaries.
, D) maximize profit. - Ans D) maximize profit
Einstein was quoted saying "Everything should be made as simple as possible, but not simpler."
When it comes to economic models this means that:
A) models shouldn't be too simple.
B) models should have a level of abstrac on appropriate to the topic inves gated.
C) models shouldn't be too complex.
D) All of these. - Ans D) All of these
Economic models are only useful in analyzing government policy.
A) False, economic models can be used to predict individual and firm behavior.
B) False, economic models are not even useful in analyzing government policy.
C) True, individuals are irra onal and therefore economic models are useless.
D) True, economists only model those ques ons for which they are hired. - Ans A) False,
economic models can used to predict individual and firm behavior.
Economic models are most useful in:
A) genera ng untestable hypotheses.
B) explaining the future with the past.
C) predic ng the direc on of the stock market.
D) explaining outcomes resul ng from management decisions. - Ans D) explaining outcomes
resul ng from management decisions.
Scarcity:
A) used to exist everywhere but has been eliminated in advanced economies.
B) applies only to people living in poverty.
C) is the inability to sa sfy all our wants.
