REVIEW OF THE BASICS:
Managerial Economicsapplies relevant micro and macro economic theory using different analytical tools (including statistical tools, basic algebraic and graphing tools, computer software like EXCEL,...), to business problems, whilst developing general principles that can be applied to the business decision-making process.
These exercises are therefore intended to help prepare you review some of those basic algebraic tools that might have been forgotten. Please do not be intimated. You will find them easier than you think. The same is true of the basic economics principles.
Please answer all questions. Answers are to be posted in ...view middle of the document...
A) Land, labor, capital, entrepreneurship B) Land, labor, money, management skills
C) Land, natural resources, labor, capital D) Land, labor, capital, technology
14) The best definition of the subject of economics is
A) How choices are made under conditions of scarcity
B) How money is used
C) How goods and services are produced
D) How businesses maximize profits
15) Complete the statement with "supply" or "demand": A maximum price below the equilibrium price causes excess ________, while a minimum price above the equilibrium price causes excess._________.
A) Supply, Demand
B) Demand, Supply
C) Demand, Demand
D) Supply, Supply
16) Complete the statement with "right" or "left": An increase in the price of cassette tapes will shift the demand curve for CDs to the a. _________________; an increase in the price of CD players will shift the demand curve for CDs to the b. _____________________.
A) Left, right
B) Right, right
C) Right, left
D) Left, left
E) None of the above
17) Which of the following items go together?
A. Change in quantity supplied D. Shifting the supply curve
B. Change in production cost E. Change in price
C. Change in supply F. Movement along the supply curve
A) A,C,F; B,E,D.
B) A,C,D; BEF
C) A,E,F; B,C,D
D) A,D,C; BEF
E) D,E,F; A,C,D
18) Complete the statement with "supply" or "demand": If the price and quantity change in...