WorksheetsManagerial Economics
Total questions: 27
Worksheet time: 27mins
Name
Class
Date
1.
Name
4 lines
2.
Register Number
4 lines
3.
Managerial economics helps businesses make better
a)
Products
b)
Decisions
c)
Employees
d)
Advertisements
4.
When you choose to buy a pizza instead of a burger, the burger is your ________.
a)
Actual cost
b)
Opportunity cost
c)
Fixed cost
d)
Extra cost
5.
Money you get in the future is usually worth ________ than the same amount of money today.
a)
More
b)
Undefined
c)
The same
d)
Less
6.
When things in a market are balanced and don't change easily, it's called ________.
a)
Chaos
b)
Decline
c)
Growth
d)
Equilibrium
7.
If making one more item adds more to your money than it costs to make it, you should probably make ________.
a)
More
b)
The same amount
c)
Less
d)
None
8.
Thinking about the extra benefit and extra cost of a choice is called ________ analysis.
a)
Marginal
b)
Total
c)
Average
d)
Fixed
9.
________ means you know what will happen for sure.
a)
Uncertainty
b)
Certainty
c)
Probability
d)
Risk
10.
________ means you don't know exactly what will happen.
a)
Uncertainty
b)
Loss
c)
Profit
d)
Equilibrium
11.
Most companies want to make the most ________ possible.
a)
Products
b)
Sales
c)
Friends
d)
Profit
12.
Instead of trying to get the absolute best, sometimes companies just try to get something ________.
a)
Satisfactory
b)
Complicated
c)
Worst
d)
Expensive
13.
Managerial economics primarily focuses on:
a)
Studying the overall economy of a nation.
b)
Analyzing historical economic events.
c)
Applying economic theories and principles to business decisions.
d)
Predicting future stock market trends.
14.
The value of the next best alternative forgone when making a decision is known as:
a)
Sunk cost.
b)
Explicit cost.
c)
Opportunity cost.
d)
Accounting cost.
15.
Discounting is a process used to:
a)
Determine the rate of inflation.
b)
Increase the future value of money.
c)
Measure the profitability of past investments.
d)
Calculate the present value of future cash flows.
16.
The concept that a dollar received today is worth more than a dollar received in the future is called:
a)
Deflation.
b)
Time value of money.
c)
Compound interest.
d)
Inflation.
17.
A state where opposing economic forces balance each other is referred to as:
a)
Expansion.
b)
Recession.
c)
Equilibrium.
d)
Disequilibrium.
18.
Analyzing the change in total cost resulting from producing one more unit of output is an example of:
a)
Fixed cost analysis.
b)
Marginal cost analysis.
c)
Total cost analysis.
d)
Average cost analysis.
19.
Incremental analysis involves comparing:
a)
Total revenue and total cost at different production levels.
b)
The change in revenue and the change in cost from a particular decision.
c)
Average revenue and average cost.
d)
Fixed costs and variable costs.
20.
The possibility of loss or injury is best described as:
a)
Uncertainty.
b)
Probability.
c)
Certainty.
d)
Risk.
21.
When the outcome of a decision is unknown and cannot be predicted with probability, it is a state of:
a)
Uncertainty.
b)
Certainty.
c)
Expected value.
d)
Risk.
22.
The traditional primary objective of a business firm is generally assumed to be:
a)
Maximizing social welfare.
b)
Maximizing profit.
c)
Maximizing employee satisfaction.
d)
Maximizing market share.
23.
Which theory suggests that managers aim to achieve a satisfactory level of performance rather than the absolute maximum?
a)
Simon's Satisficing Model.
b)
Profit maximization model.
c)
Sales maximization model.
d)
Cyert & March Behavioral theory.
24.
The sales maximization model, as proposed by Baumol, suggests that managers prioritize:
a)
Increasing the volume of sales revenue.
b)
Maintaining a stable workforce.
c)
Minimizing operational costs.
d)
Achieving the highest possible profit levels.
25.
The Cyert & March Behavioral theory emphasizes the role of ________ in organizational decision-making.
a)
Complete information.
b)
Bounded rationality and organizational processes.
c)
Solely economic factors.
d)
Perfect rationality.
26.
If spending more money on advertising leads to selling more products, and selling more products leads to making more profit, then spending more on advertising can logically lead to:
a)
Lower profits.
b)
The same profits.
c)
No change in sales.
d)
Higher profits.
27.
Company A can make either 10 cars or 20 trucks with the same resources. If they choose to make 10 cars, the opportunity cost is:
a)
Zero, because they used their own resources.
b)
The cost of making the 10 cars.
c)
The profit from selling the 10 cars.
d)
The 20 trucks they could have made instead.
100 %
