Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business economic > 1st exam > Flashcards

1st exam Flashcards

1
Q
  1. Marginal analysis
A

Leads to the optimization of economic processes & determines the impact that actions will take on changes.

prices, products, etc

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q
  1. A decision will be considered favorable if
A

it will increase the income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q
  1. Principle of contribution
A

If it contributes, even if its little, it should stay

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q
  1. Principle of maximization
A

Maximization of profits by achieving equilibrium between costs and income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q
  1. Principle of equimarginality
A

best mix to achieve maximum results

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q
  1. Opportunity cost
A

Income that could be generated by using the second best option

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q
  1. Relevance theory:
A

What is relevant to the study of economics

a. D
b. M
c. S

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q
  1. Law of demand
A

The higher the price, the lower the quantity demanded

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q
  1. Nothing in economics is neutral or without cost
A

it is necessary to quantify a priori al the costs from a decision made

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q
  1. The company is productive entity susceptible to being affected in three areas:
A

a. Related to income
b. To costs
c. To financial aspects

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q
  1. Before implementing a system of discounts, the company must analyze on the capacity to
A

maintain these in an environment where prices for inputs increases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q
  1. Valuation of economic impact
A

Any decision to produce anything must be made based on the economic impact on the company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q
  1. Consumer logic
A

Adherence of criteria, patterns of behavior and buying habits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q
  1. Utility satisfaction analysis
A

How consumers organize buying according to the relationship between utility and price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q
  1. Marginal utility satisfaction
A

Added satisfaction from getting one more

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q
  1. Decreasing marginal utility:
A

one more unit, less satisfaction

17
Q
  1. Rational Behavior
A

assumption to establish logic of utility satisfaction

18
Q
  1. Indifference analysis
A

Measuring what consumers want and what they can acquire

19
Q
  1. Indifference curve:
A

Result of combination of items with which the customer can obtain the same satisfaction

20
Q
  1. Substitution effect
A

Lowering the price of a good, its relative price also lowers, consumers can purchase extra

21
Q
  1. Demand curve
A

Negative slope

22
Q
  1. Profitability of the company:
A

Generation of profits depend on the proper management of elements making up its operation

23
Q
  1. Compound demand
A

Made up by different uses for an item

24
Q
  1. Joint demand:
A

Demand in combination with another

25
Q
  1. Derived demand:
A

Demand depends on the demand of another end product

26
Q
  1. More accurately determining demand
A

Target market must be identified according to our product, setting litmits on time in terms of function of demand

27
Q
  1. Changes in demand vs in quantity demanded
A

any variable that influences demand vs ocurring by changes on price

28
Q
  1. Demand function
A

Qx f(Px,Mk,Y,Cr,Ad)

29
Q

a. Technical efficiency

A

Most efficient method will be the one using resources to produce greatest amount of goods

30
Q

b. Economic efficiency:

A

The most efficient process will be the one with less cost

31
Q
  1. Production Function:
A

S=f(G,T,P1,Pi,F1)

32
Q
  1. Marginal production
A

The additional unit produced by adding another worker

33
Q
  1. Three phases of production:
A

a. Phase 1: average production reaches maximum level
b. Phase 2: Last point to marginal production equals zero and average prod is max
c. Phase 3: Pmg is negative, so TP is decreasing

34
Q
  1. Cost function
A

Relationship between productivity and costs of inputs of a company

35
Q
  1. Elastic demand products:
A

High sensitivity to price, if price rises you would substitute with another

36
Q

Not much sensitivity to price, if price rises you would still think about the same product

A
  1. Inelastic demand products
37
Q

The optimal sales point

A

is when marginal cost equals marginal income or profit

38
Q

Economic scarcity and the enterprise

A

Scarce resources unlimited needs

Business economic (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions