GMS 402 Final Exam questions with
verified answers graded A+
The study of how to direct scarce resources in the way that most efficiently achieves a
managerial goal - correct answer ✔✔Managerial Economics
= accounting profit - opportunity cost - correct answer ✔✔How to calculate economic profit
-Identifying goals and constraints
-Recognize the nature and importance of profits
-Understand incentives
-Understand markets
-Recognize the time value of money
-Use marginal Analysis - correct answer ✔✔Basic Principles compromising effective
management
Consumer - producer rivalry
Consumer - consumer rivalry
Producer - producer rivalry - correct answer ✔✔The three rivalries in economic transactions
1. Entry
3. Power of Buyers
4. Industry Rivals - correct answer ✔✔Which of the following is among the 5 forces that impact
the sustainability of industry profits according to Michael Porter
, 1. Entry
2. Firm Size
3. Power of Buyers
4. Industry Rivals
True - correct answer ✔✔True of false: managerial economics includes the analysis of
household decisions making
As price goes up, quantity demanded goes down.
As price goes down, quantity demanded goes up. - correct answer ✔✔Law of Demand
change in quantity demanded - correct answer ✔✔Movement along the demand curve is called
Increases demand
Decreases Demand - correct answer ✔✔A rightward shift in demand:
A leftward shift in demand:
Income
Price of related goods
Advertising/Tastes
Population
Consumer Expectations - correct answer ✔✔What are the demand shifters
Normal good: Good whose demand increases when consumer income increases
verified answers graded A+
The study of how to direct scarce resources in the way that most efficiently achieves a
managerial goal - correct answer ✔✔Managerial Economics
= accounting profit - opportunity cost - correct answer ✔✔How to calculate economic profit
-Identifying goals and constraints
-Recognize the nature and importance of profits
-Understand incentives
-Understand markets
-Recognize the time value of money
-Use marginal Analysis - correct answer ✔✔Basic Principles compromising effective
management
Consumer - producer rivalry
Consumer - consumer rivalry
Producer - producer rivalry - correct answer ✔✔The three rivalries in economic transactions
1. Entry
3. Power of Buyers
4. Industry Rivals - correct answer ✔✔Which of the following is among the 5 forces that impact
the sustainability of industry profits according to Michael Porter
, 1. Entry
2. Firm Size
3. Power of Buyers
4. Industry Rivals
True - correct answer ✔✔True of false: managerial economics includes the analysis of
household decisions making
As price goes up, quantity demanded goes down.
As price goes down, quantity demanded goes up. - correct answer ✔✔Law of Demand
change in quantity demanded - correct answer ✔✔Movement along the demand curve is called
Increases demand
Decreases Demand - correct answer ✔✔A rightward shift in demand:
A leftward shift in demand:
Income
Price of related goods
Advertising/Tastes
Population
Consumer Expectations - correct answer ✔✔What are the demand shifters
Normal good: Good whose demand increases when consumer income increases
