economia

Question 1

Manager

Answer 1

person who directs resources to achieve a stated goal

Question 2

Economics

Answer 2

the science of making decisions in the presence of scarce resources

Question 3

Scarcity

Answer 3

involves making choice from alternatives available

Question 4

Resources

Answer 4

anything used to achieve a goal or produce a service or good

Question 5

Managerial economics

Answer 5

the study of how to direct scarce resources in the way that most efficiently achieves a managerial goal

Question 6

TOC

Answer 6

Total Opportunity Cost

Question 7

Five Forces Framework and Industry Profitability

Answer 7

Entry
Power of Input Suppliers
Power of Buyers
Industry rivalry
Substitutes and Complements

Question 8

Incentives

Answer 8

how resources are used and how hard workers work

Question 9

Consumer – Producer:

Answer 9

Occurs because of the competing economic interests of both consumer wants a low price, producer a high price – and leads to compromise, the equilibrium price.

Question 10

Consumer-Consumer

Answer 10

Reduces the negotiating power of consumers in the marketplace. It arises because of the economic doctrine of scarcity.

Question 11

Producer – Producer

Answer 11

Reduces the negotiating power of producers. Their disciplining
device functions only when multiple sellers of a product compete in the market

Question 12

Government – Market

Answer 12

The government intervenes to discipline the market when
agents on either side of the market find themselves disadvantaged

Question 13

Present Value (PV)

Answer 13

The amount that would have to be invested today at the prevailing
interest rate to generate the given future value (FV)

Question 14

PV = FV

Answer 14

when i = 0

Question 15

Net Present Value (NPV)

Answer 15

The present value of the income stream generated by a project
minus the current cost of the project.

Question 16

Change in quantity demanded

Answer 16

Changes in the price of a good lead to a change in the quantity
demanded of that good. This corresponds to a movement along a given demand curve.

Question 17

Change in demand

Answer 17

Changes in variables other than the price of a good, such as income or the price
of another good, lead to a change in demand.

Question 18

Demand shifters

Answer 18

Variables other than the price of a good that influence demand (demand curve
moves to the right or to the left).

Question 19

Normal good

Answer 19

A good for which an increase (decrease) in income leads to an increase (decrease) in
the demand for that good

Question 20

Inferior good

Answer 20

A good for which an increase (decrease) in income leads to a decrease (increase) in
the demand for that good.

Question 21

Substitutes

Answer 21

Goods for which an increase (decrease) in the price of one good leads to an
increase (decrease) in the demand for the other good.

Question 22

Complements

Answer 22

Goods for which an increase (decrease) in the price of one good leads to a decrease
(increase) in the demand for the other good.

Question 23

Demand function

Answer 23

A function that describes how much of a good will be purchased at alternative
prices of that good and related goods, alternative income levels and alternative values of other
variables affecting demand

Question 24

Linear demand function

Answer 24

A representation of the demand function in which the demand for a given
good is a linear function of prices, income levels, and other variable influencing demand

Question 25

Consumer surplus

Answer 25

The value consumers get from a good but do not have to pay for. This is the area
above the price paid for a good, but below the demand curve

Question 26

Law of supply

Answer 26

As selling price increases (decreases) the quantity a supplier is willing to produce
increases (decreases