Simple questions on basic economics
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Simple questions on basic economics
Question 1
Nonvalue-maximizing behavior is most common:
in vigorously competitive markets.
When shareholders are poorly informed.
when managers own a significant ownership interest.
in the production of goods rather than services.
Question 2
Managerial economics cannot be used to identify:
how macroeconomic forces affect the organization.
goals of the organization.
Ways to efficiently achieve the organization's goals.
microeconomic consequences of managerial behavior.
Question 3
Business profit is
The residual of sales revenue minus the explicit accounting costs of doing business.
a normal rate of return.
economic profit.
the return on stockholder's equity.
Question 4
Monopoly exploitation is reduced by regulation that:
enhances product-market competition.
increases the bargaining power of workers.
increases the bargaining power of employers
restricts output.
Question 5
The value of the firm is equal to:
the present value of tangible assets
the present value of all future revenues
the present value of all future cash flows.
current revenues less current costs.
Question 6
Economic profit equals:
normal profits plus opportunity costs.
business profits minus implicit costs.
business profits plus implicit costs.
normal profits minus opportunity costs.
Question 7
An equation is:
an analytical expression of functional relationships.
a visual representation of data.
a table of electronically stored data.
a list of economic data.
Question 8
The breakeven level of output occurs where:
marginal cost equals average costs.
marginal profit equals average costs.
total profit equals zero
marginal costs equals marginal revenue.
Question 9
Inflation is:
a line that touches but does not intersect a given curve.
a point of maximum slope.
a measure of the steepness of a line.
an activity level that generates highest profit.
Question 10
If P = $ 1,000 - 4Q:
MR = $ 1,000 - 4Q.
MR = $1000 - 8Q.
MR = $1,000Q - $4.
MR = $250 - $.25P
Question 11
Total cost minimization occurs at the point where:
MC=0.
MC=AC
AC=0
Q=0
Question 12
At the profit-maximizing level of output:
Marginal profit equals zero
marginal profit is less than average profit.
marginal profit exceeds average profit.
marginal cost equals average cost,
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Question 1
Nonvalue-maximizing behavior is most common:
in vigorously competitive markets.
When shareholders are poorly informed.
when managers own a significant ownership interest.
in the production of goods rather than services.
Answer: When shareholders are poorly informed.
Question 2
Managerial economics cannot be used to identify:
how macroeconomic forces affect the organization.
goals of the organization.
Ways to efficiently achieve the organization's goals.
microeconomic consequences of managerial behavior.
Answer: goals of the organization.
Question 3
Business profit is
The residual of sales revenue minus the explicit accounting costs of doing business.
a normal rate of return.
economic profit.
the return ...
Purchase this Solution
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