Exam (elaborations) TEST BANK for Managerial Economics

1. Managerial economics uses ____________ to help managers solve problems. a. formal models b. prescribed behavior c. quantitative methods d. microeconomic theory e. all of the above ANS: E PTS: 1 2. Managerial economics draws upon all of the following EXCEPT: a. finance b. microeconomics c. accounting d. marketing e. sociology ANS: E PTS: 1 3. The economic theory of the firm assumes that the primary objective of a firm’s owner or owners is to: a. behave in a socially conscientious manner b. maximize the firm’s profit c. maximize the firm’s total sales d. maximize the value of the firm e. All of these are primary objectives ANS: D PTS: 1 O O O Chapter 1: Introduction 2 4. If the annual interest rate is i, the present value of $X to be received at the end of each of the next n years is: a. $X/i b. $X/(1 + i)n c.