Econ 528 Midterm || QUESTIONS WITH 100% VERIFIED ANSWERS!!
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Course
Econ 528
Institution
Econ 528
Define manager correct answers someone who directs resources to achieve a stated goal
In what ways does a manager direct economic resources (3) correct answers 1. directs efforts of others
2. purchases inputs used in the production of a firms output
3. directs the product or price or quantity ...
Econ 528 Midterm || QUESTIONS WITH 100%
VERIFIED ANSWERS!!
Define manager correct answers someone who directs resources to achieve a stated goal
In what ways does a manager direct economic resources (3) correct answers 1. directs efforts
of others
2. purchases inputs used in the production of a firms output
3. directs the product or price or quantity decisions
Define economics correct answers the science of making decisions and choices in the face of
scarcity resources. These decisions respond to incentives
What are economic resources correct answers anything used to produce a good or service or
to achieve a goal
Why are decisions important in economics? correct answers because scarcity implies trade-
offs
What is managerial economics correct answers when someone who directs resources such as
capital and labor to make crucial market decisions in the face of scarcity to achieve a
managerial goal
What are some examples of managerial economic decisions correct answers 1. produce a
component in hours or purchase outside
2. specialize in one specific product or multiple
3. quantity and price
what are the economic responsibilities of effective management correct answers 1. Identify
goals and constraints
2. Recognize the nature and importance of profits
3. Understand incentives
4. Understand markets
5. Recognize the time and value of money
6. Use marginal analysis
What are the goals of a manger correct answers 1. have well defined goals
2. maximize profit (accounting and economic)
accounting profits correct answers the total amount of money taken in from sales (total
revenue, or price times quantity sold) minus the dollar cost of producing goods or services
Economic profits correct answers The difference between total revenue and total opportunity
cost.
opportunity cost correct answers includes both the explicit cost of the resource and the
implicit cost of giving up the best alternative
, opportunity cost of production correct answers the value of the best alternative use of the
resources that a firm uses in production
opportunity cost of production is the sum of the cost of resources... correct answers 1. bought
in the market
2. owned by the firm
3. supplied by the firms owner
When does a firm incur an opportunity cost correct answers when it buys resources in the
market because it could have bought different resources to produce some other good or
service.
If you demand something, then you... correct answers 1. Want it
2. Can afford it
3. Plan to buy it
want correct answers an item that we desire but that is not essential to survival
demand correct answers the desire to own something and the ability to pay for it. it reflects
the decision about which wants to satisfy
quantity demanded correct answers the amount of a good that buyers plan to buy during a
particular time period and at a particular price
The law of demand states that correct answers the lower the price, the greater the quantity
demanded
substitution effect correct answers when consumers react to an increase in a good's price by
consuming less of that good and more of other goods
income effect correct answers the change in consumption resulting from a change in real
income
Why does a change in the price change the quantity demanded? correct answers because of
the substitution effect and income effect
willingness to pay measures correct answers marginal benefit
a demand curve is also a correct answers willingness-and-ability-to-pay curve
the smaller the quantity available, correct answers the higher is the price that someone is
willing to pay for another unit
When demand increases correct answers demand curve shifts right
when demand decreases correct answers demand curve shifts leftward
change in demand correct answers a shift of the demand curve, which changes the quantity
demanded at any given price
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