Managerial Economics - Quiz 1

The Goal of Managerial Economics...

• Maximize profit and use of efficient scares resources.

• Helping Businesses

• Starting a right business

• Make more money

Managerial Economics is

the stream of management studies that emphasizes solving problems in businesses using the

theories in _______

• None

• macroeconomics.

• micro economics.

• micro and macroeconomics.

There are enormous options in the market. So, people have to make choices among the various

options available.

• Trade-Offs

• Opportunity Cost

• Rational People Think at the Margin

• People Respond to Incentives

Sometimes we let go of

while selecting the most appropriate one.

• Trade-Offs

• Opportunity Cost

• Rational People Think at the Margin

• People Respond to Incentives

“Managerial economics is concerned with the application of ____________ to the problems of formulating rational managerial decisions.”

• economic opportunity and economic analysis

• economic diversification and economic analysis

• economic concepts and economic analysis

• economic concepts and economic forcast

Managerial economics has a close linkage with other disciplines and fields of study.

• True

• False

It studies the behavior of the individual units and small groups of

units.

• Micro-economics:

• Macro-economics:

• Macron-economics:

• Micron-economics:

The roots of managerial economics spring from _________ theory.

• Micro-economics:

• Macro-economics:

• Macron-economics:

• Micron-economics:

It deals with the behavior of the large aggregates in the economy.

• Micro-economics:

• Macro-economics:

• Macron-economics:

• Micron-economics:

_________ contributes to business forecasting.

• Micro-economics:

• Macro-economics:

• Macron-economics:

• Micron-economics: