Question 1

What are the typical types of risk faced by a firm?

Accepted Answer

Changes in supply and demand conditions,changes in technology,increased competition,changes in interest rates and inflation rates,exchange rate changes,and political risk are typical types of risk faced by firms.

Question 2

A critical element of entrepreneurship (as opposed to managerial skills)is

Accepted Answer

A) leadership skills. 
B) risk taking. 
C) technology. 
D) political skills. 
A) leadership skills. 
B) risk taking. 
C) technology. 
D) political skills. B

Question 3

Which of the following is the best example of the "command" process?

Accepted Answer

A) United Airlines buys Northwest Airlines. 
B) Striking auto workers force General Motors to shut down its factories. 
C) Banks raise their fees on late payments by credit card holders. 
D) The FCC requires local telephone companies to provide access to their local networks before being able to offer long distance service. 
A) United Airlines buys Northwest Airlines. 
B) Striking auto workers force General Motors to shut down its factories. 
C) Banks raise their fees on late payments by credit card holders. 
D) The FCC requires local telephone companies to provide access to their local networks before being able to offer long distance service. D

Question 4

Which of the following is the best example of "what goods and services should be produced?"

Accepted Answer

A) the use of a capital intensive versus a labor intensive process of manufacturing textiles 
B) the production of SUVs versus the production of sub-compact cars 
C) the manufacturing of computer workstations in China or in India 
D) the leasing versus the purchasing of new capital equipment 
A) the use of a capital intensive versus a labor intensive process of manufacturing textiles 
B) the production of SUVs versus the production of sub-compact cars 
C) the manufacturing of computer workstations in China or in India 
D) the leasing versus the purchasing of new capital equipment

Question 5

Managerial economics is best defined as

Accepted Answer

A) the study of economics by managers. 
B) the study of the aggregate economic activity. 
C) the study of how managers make decisions about the use of scarce resources. 
D) All of the above are good definitions. 
A) the study of economics by managers. 
B) the study of the aggregate economic activity. 
C) the study of how managers make decisions about the use of scarce resources. 
D) All of the above are good definitions.

Question 6

How do the three basic economic questions relate to the firm?

Accepted Answer

Firms must choose WHAT goods and service

Question 7

Opportunity cost is best defined as

Accepted Answer

A) the amount given up when choosing one activity over all other alternatives. 
B) the amount given up when choosing one activity over the next best alternative. 
C) the opportunity to earn a profit that is greater than the one currently being made. 
D) the amount that is given up when choosing an activity that is not as good as the next best alternative. 
A) the amount given up when choosing one activity over all other alternatives. 
B) the amount given up when choosing one activity over the next best alternative. 
C) the opportunity to earn a profit that is greater than the one currently being made. 
D) the amount that is given up when choosing an activity that is not as good as the next best alternative.

Question 8

The economic concept of "opportunity cost" is most closely associated with which of the following management considerations?

Accepted Answer

A) market structure 
B) resource scarcity 
C) product demand 
D) technology 
A) market structure 
B) resource scarcity 
C) product demand 
D) technology

Question 9

Which of the following is the best example of how the question of "what goods and services to produce?" is answered by the command process?

Accepted Answer

A) government subsidies for windmill energy production 
B) laws regarding equal opportunity in employment 
C) government allowance for the deduction of interest payments on private mortgages 
D) government regulations concerning the dumping of hazardous waste 
A) government subsidies for windmill energy production 
B) laws regarding equal opportunity in employment 
C) government allowance for the deduction of interest payments on private mortgages 
D) government regulations concerning the dumping of hazardous waste

Question 10

Which of the statements below best illustrates the use of the market process in determining the allocation of scarce resources?

Accepted Answer

A) "Let's make this product because this is what we know how to do best." 
B) "We should consider shifting to products where we can earn even more money." 
C) "Everyone is opening video stores,why don't we?" 
D) "We can't stop making this product.This product gave our company its start." 
A) "Let's make this product because this is what we know how to do best." 
B) "We should consider shifting to products where we can earn even more money." 
C) "Everyone is opening video stores,why don't we?" 
D) "We can't stop making this product.This product gave our company its start."

Question 11

In the text,the key question in the "economics of a business" is

Accepted Answer

A) whether the need to grow revenues is being met. 
B) should the firm be in the business in which it is operating. 
C) whether the firm faces rising labor costs. 
D) can the firm affect its market share. 
A) whether the need to grow revenues is being met. 
B) should the firm be in the business in which it is operating. 
C) whether the firm faces rising labor costs. 
D) can the firm affect its market share.

Question 12

Which of the following is not considered as a factor of production?

Accepted Answer

A) money 
B) machinery and equipment 
C) land 
D) unskilled labor 
A) money 
B) machinery and equipment 
C) land 
D) unskilled labor

Question 13

From the standpoint of a soft drink company the question of "What goods and services should be produced?" is best represented by which of the following decisions?

Accepted Answer

A) whether or not to hire additional workers 
B) whether or not to increase its advertising 
C) whether or not to shut down selected manufacturing facilities 
D) None of the above are examples. 
A) whether or not to hire additional workers 
B) whether or not to increase its advertising 
C) whether or not to shut down selected manufacturing facilities 
D) None of the above are examples.

Question 14

Which of the following is the best example of the "traditional process"?

Accepted Answer

A) commercial bank mergers 
B) minimum age limits for the purchase of alcoholic beverages 
C) auctioning U.S.Treasury bills 
D) colleges and universities give admissions preferences to children of alumni 
A) commercial bank mergers 
B) minimum age limits for the purchase of alcoholic beverages 
C) auctioning U.S.Treasury bills 
D) colleges and universities give admissions preferences to children of alumni

Question 15

What factors lead to competitive advantage for a firm?

Accepted Answer

Cost leadership (lower costs than compet

Question 16

The best definition of economics is

Accepted Answer

A) how choices are made under conditions of scarcity. 
B) how money is used. 
C) how goods and services are produced. 
D) how businesses maximize profits. 
A) how choices are made under conditions of scarcity. 
B) how money is used. 
C) how goods and services are produced. 
D) how businesses maximize profits.

Question 17

Managerial economics is best defined as the economic study of

Accepted Answer

A) how businesses can make the most profits. 
B) how businesses can decide on the best use of scarce resources. 
C) how businesses can operate at the lowest costs. 
D) how businesses can sell the most products. 
A) how businesses can make the most profits. 
B) how businesses can decide on the best use of scarce resources. 
C) how businesses can operate at the lowest costs. 
D) how businesses can sell the most products.

Question 18

Which of the following is the best example of "how goods and services should be produced?"

Accepted Answer

A) complying with the technical specifications in the production of an aircraft 
B) the production of jet aircraft for the air force or for a commercial airline 
C) the use of additional workers versus the use of machines in the production of goods 
D) the production of a new manufacturing facility 
A) complying with the technical specifications in the production of an aircraft 
B) the production of jet aircraft for the air force or for a commercial airline 
C) the use of additional workers versus the use of machines in the production of goods 
D) the production of a new manufacturing facility

Question 19

What economic conditions are relevant in managerial decision making?

Accepted Answer

Such factors as market structure,supply

Question 20

What other business disciplines are related to Managerial Economics?

Accepted Answer

Accounting,Finance,M

What are the typical types of risk faced by a firm?

A critical element of entrepreneurship (as opposed to managerial skills)is

Which of the following is the best example of the "command" process?

Which of the following is the best example of "what goods and services should be produced?"

Managerial economics is best defined as

How do the three basic economic questions relate to the firm?

Opportunity cost is best defined as

The economic concept of "opportunity cost" is most closely associated with which of the following management considerations?

Which of the following is the best example of how the question of "what goods and services to produce?" is answered by the command process?

Which of the statements below best illustrates the use of the market process in determining the allocation of scarce resources?

In the text,the key question in the "economics of a business" is

Which of the following is not considered as a factor of production?

From the standpoint of a soft drink company the question of "What goods and services should be produced?" is best represented by which of the following decisions?

Which of the following is the best example of the "traditional process"?

What factors lead to competitive advantage for a firm?

The best definition of economics is

Managerial economics is best defined as the economic study of

Which of the following is the best example of "how goods and services should be produced?"

What economic conditions are relevant in managerial decision making?

What other business disciplines are related to Managerial Economics?

The Firm and Its Goals

Supply and Demand

Demand Elasticity

Demand Estimation and Forecasting Appendices 5A and 5B

The Theory and Estimation of Production Appendices 6A,6B,and 6C

The Theory and Estimation of Cost Appendices 7A,7B,and 7C

Pricing and Output Decisions: Perfect Competition and Monopoly Appendices 8A and 8B

Pricing and Output Decisions: Monopolistic Competition and Oligopoly

Special Pricing Practices

Game Theory and Asymmetric Information

Capital Budgeting and Risk

The Multinational Corporation in a Global Setting

Government and Industry: Challenges and Opportunities for Todays Manager

The Global Soft Drink Industry

Filters

Exam 1: Introduction

What are the typical types of risk faced by a firm?

A critical element of entrepreneurship (as opposed to managerial skills)is

Which of the following is the best example of the "command" process?

Which of the following is the best example of "what goods and services should be produced?"

Managerial economics is best defined as

How do the three basic economic questions relate to the firm?

Opportunity cost is best defined as

The economic concept of "opportunity cost" is most closely associated with which of the following management considerations?

Which of the following is the best example of how the question of "what goods and services to produce?" is answered by the command process?

Which of the statements below best illustrates the use of the market process in determining the allocation of scarce resources?

In the text,the key question in the "economics of a business" is

Which of the following is not considered as a factor of production?

From the standpoint of a soft drink company the question of "What goods and services should be produced?" is best represented by which of the following decisions?

Which of the following is the best example of the "traditional process"?

What factors lead to competitive advantage for a firm?

The best definition of economics is

Managerial economics is best defined as the economic study of

Which of the following is the best example of "how goods and services should be produced?"

What economic conditions are relevant in managerial decision making?

What other business disciplines are related to Managerial Economics?

The Firm and Its Goals

Supply and Demand

Demand Elasticity

Demand Estimation and Forecasting Appendices 5A and 5B

The Theory and Estimation of Production Appendices 6A,6B,and 6C

The Theory and Estimation of Cost Appendices 7A,7B,and 7C

Pricing and Output Decisions: Perfect Competition and Monopoly Appendices 8A and 8B

Pricing and Output Decisions: Monopolistic Competition and Oligopoly

Special Pricing Practices

Game Theory and Asymmetric Information

Capital Budgeting and Risk

The Multinational Corporation in a Global Setting

Government and Industry: Challenges and Opportunities for Todays Manager

The Global Soft Drink Industry

Filters