ECON 528 exam questions with answers

ECON 528 exam questions with answers
|\ |\ |\ |\ |\




Managerial economics is best defined as the economic
|\ |\ |\ |\ |\ |\ |\ |\



study of: - CORRECT ANSWERS ✔✔how businesses can
|\ |\ |\ |\ |\ |\ |\ |\



decide on the best use of scarce resources.
|\ |\ |\ |\ |\ |\ |\




Managerial economics: - CORRECT ANSWERS ✔✔helps
|\ |\ |\ |\ |\ |\



managers make decisions in the face of scarcity.
|\ |\ |\ |\ |\ |\ |\




Microeconomics includes the study of the; - CORRECT |\ |\ |\ |\ |\ |\ |\ |\



ANSWERS ✔✔b. choices made by individuals and
|\ |\ |\ |\ |\ |\ |\



businesses.


The form of economics most relevant to managerial
|\ |\ |\ |\ |\ |\ |\ |\



decision-making within the firm is: - CORRECT ANSWERS |\ |\ |\ |\ |\ |\ |\ |\



✔✔b. microeconomics
|\




CEOs should focus on - CORRECT ANSWERS ✔✔b.
|\ |\ |\ |\ |\ |\ |\ |\



maximizing firm profits. |\ |\




Managerial economics generally refers to the integration
|\ |\ |\ |\ |\ |\ |\



of economic theory with business - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\



✔✔Practice

, A managerial decision is not profitable if - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\



ANSWERS ✔✔b. it increases costs more than revenue
|\ |\ |\ |\ |\ |\ |\




According to the profit-maximization goal, the firm should
|\ |\ |\ |\ |\ |\ |\



attempt to maximize short-run profits since there is too
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\



much uncertainty associated with long-run profits. -
|\ |\ |\ |\ |\ |\ |\



CORRECT ANSWERS ✔✔False |\ |\




1) Microeconomics studies the allocation of - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\



ANSWERS ✔✔B) scarce resources. |\ |\ |\




2) Managerial economics - CORRECT ANSWERS ✔✔C)
|\ |\ |\ |\ |\ |\ |\



helps managers make decisions in the face of scarcity.
|\ |\ |\ |\ |\ |\ |\ |\




4) Microeconomic models are used to - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\



ANSWERS ✔✔A) make predictions. |\ |\ |\




B) explain real-life phenomena.
|\ |\ |\




C) evaluate production alternatives.
|\ |\ |\




D) All of the above.
|\ |\ |\ |\




Answer: D |\




5) Managerial Economics as a specialized branch of
|\ |\ |\ |\ |\ |\ |\ |\



Economics - CORRECT ANSWERS ✔✔b. Provide logic and
|\ |\ |\ |\ |\ |\ |\ |\



methodology to find solutions to business problems |\ |\ |\ |\ |\ |\