CHAPTER 1

Economists are very good at telling us what is going on, but often fail when they tell us what to do.

• true

• false

approaches the same phenomena at an aggregate level, for example, the total consumption and production of a region.

• Managerial

• Microeconomics

• Macroeconomics

• Scarce Resources

•is the mother science on which management is based

• Economics

• Management

• Managerial

• economy

studies phenomena related to goods and services from the perspective of individual decision-making entities—that is, households and businesses.

• Managerial

• Microeconomics

• Macroeconomics

• Scarce Resources

MICROECONOMICS

• demand and supply between individuals

• includes analysis of: consumers, buyers, vendors, providers

• includes studies related to: local, national, regional and global economies

• total economic environment

ECONOMICS

• the study of the production, distribution, and consumption of goods and services. The first definition indicates that economics includes any business, nonprofit organization, or administrative unit.

• studies phenomena related to goods and services from the perspective of individual decision-making entities—that is, households and businesses.

• approaches the same phenomena at an aggregate level, for example, the total consumption and production of a region.

• the study of choice related to the allocation of scarce resources. The second definition establishes that economics is at the core of what managers of these organizations do.

If a manager does not restricts himself/herself to telling what is going on, and does take action, he /she will find his career terminated.

• false

• true

ORGANIZATIONS MUST CREATE VALUE FOR THEIR CUSTOMERS

• FALSE

• TRUE

•Economic environment

•Social environment

•Political environment

• MACROECONOMICS APPLIED TO BUSINESS ENVIRONMENT

• MICROECONOMICS APPLIED TO OPERATIONAL ISSUES

MANAGERS WHO UNDERSTAND ECONOMICS MANAGERS WHO UNDERSTAND ECONOMICS IN CREATING VALUE

• TRUE

• FALSE