is a stream of management studies which emphasizes solving business problems and decision-making by applying the theories and principles of microeconomics and macroeconomics.

• Managerial Economics

• Liberal Managerialism

• Normative Managerialism

• Radical Managerialism

is the quantity of good or service that consumers demand depends on price and other factors such as consumer incomes and the prices of related goods.

• Supply

• Demand

• Market Equilibrium

• Shocks to the Equilibrium

Government policy may also affect the equilibrium by

• shifting the demand curve or the supply curve

• restricting price or quantity

• using taxes to create a gap between the price consumers pay and the price firms receive.

• all of the above

Which is not the effects of Government interventions?

• price controls (price ceiling and floor pricing)

• . Government policy

• Government action shifts the supply curve only

• sales taxes or subsidize a good

Price elasticity of demand (demand elasticity) is the percentage change in quantity demanded, Q divided by the

• percentage change in price

• percentage change in quantity

• percentage change in demand

• percentage change in supply

Prediction about the future are often referred to as

• extrapolation

• forecast or forecasting

• analyzing

• none of the above

the set of numerical values that reflect the relative ranking of bundles of goods or the satisfaction one gets from consuming a good or services is

• util

• marginal utility

• utility

• total utility

A firm uses a production process to transform inputs or factors of production into outputs. Most input can be group into three broad categories. Which variable category is not included?

• Capital (K)

• Labor (L)

• Materials (M)

• Cost (C)

If a firm keeps increasing an input, holding all other inputs and technology constant, the corresponding increases in output will eventually become smaller (diminish). This law also determines the shape of the marginal product of labor curves.

• The Law of Marginal Returns

• The Law of Diminishing Marginal Returns

• The Law of Supply and Demand

• Isoquants

is the value of the best alternative use of the resource.

• Opportunity Cost

• Sunk Cost

• Short-Run Cost

• Long-Run Cost