Managerial Economics

Question 1

Application of economic methods in the managerial decision

Answer 1

Managerial Economics

Question 2

Managerial economics is related to

Answer 2

Economic theory, decision sciences, and business function

Question 3

It deals essentially with how the market works and interactions between various components of the economy

Answer 3

Microeconomics

Question 4

Aspects of microeconomic theory

Answer 4

1. ) Theory of the firm
2. ) Theory of consumer behavior (demand)
3. ) Production and cost theory (supply)
4. ) Market structure and competition theory

Question 5

An approach that treats individual elements within the economy as rational agents with quantitative functions

Answer 5

Neoclassical Framework

Question 6

Tends to be descriptive, explaining how the market works

Answer 6

Microeconomics

Question 7

Is often prescriptive, explaining what the firms should do, recommendations and strategies

Answer 7

Managerial Economics

Question 8

Is often criticized as dated and unrealistic, but can be defended

Answer 8

Neoclassical framework

Question 9

It is an economic analysis that explains what happens in the economy and why, without making any recommendations

Answer 9

Positive Economics

Question 10

An economic statement that makes recommendations to economic policy

Answer 10

Normative Economics

Question 11

The units involved in organizations are

Answer 11

1. ) Production and operation
2. ) Marketing
3. ) finance and accounting
4. ) Human Resources

Question 12

Tends to focus more on the behavioral aspect, when they focus more on the consumer rather than when they concern about the behavior of employees

Answer 12

Managerial Economics

Question 13

It describes or explains the relationship between phenomena that we observed

Answer 13

Scientific Theory

Question 14

The variable can be measured

Answer 14

mensuration

Question 15

Utility Maximization is for _

Answer 15

Consumer theory

Question 16

Profit maximization is for _

Answer 16

Production and cost theory

Question 17

is the study of how people decide to spend theirmoneybased on their individual preferences andbudgetconstraints.

Answer 17

Consumer Theory

Question 18

states that the cost of a product is determined by the sum total of the cost of all the resources that went into makingit.

Answer 18

Production and cost theory