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Simple questions on basic economics

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 ...

Solution Summary

This solution is comprised of a detailed explanation to answer simple questions on basic economics.

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