Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
BUSINESS 702 FIRST EXAM KEY SPRING 1997 MANAGERIAL ECONOMICS MULTIPLE CHOICE QUESTIONS (30 pts, 1pt each) 1. A typical annual rate of return on invested capital is: A. 5%. > B. 10%. C. 15%. D. 20%. 2. Warren Buffett looks for "wonderful businesses" that feature: A. ongoing innovation. B. large capital investment. > C. consistent earnings growth. D. complicated business strategies. 3. Business profit is: > A. the residual of sales revenue minus the explicit accounting costs of doing business. B. a normal rate of return. C. economic profit. D. the return on stockholders' equity. 4. According to frictional profit theory, above-normal profits: A. are sometimes caused by barriers to entry that limit competition. B. arise as a result of successful invention or modernization. C. can sometimes be seen as a reward to efficient operations. > D. are observed following unanticipated changes in product demand or cost conditions. . 5. The primary virtue of managerial economics lies in its: A. logic. > B. usefulness. C. consistency. D. mathematical rigor. 6. The optimal decision produces: A. maximum revenue. B. maximum profits. C. minimum average costs. > D. a result consistent with managerial objectives. 7. An equation is: > A. an analytical expressions of functional relationships. B. a visual representation of data. C. a table of electronically stored data. D. a list of economic data. 8. A dependent variable is: A. an X-variable determined separately from the Y-variable. > B. a Y-variable determined by X values. C. a Y-variable determined prior to X values. D. a Y-variable determined with X values. 9. Inflection is: A. a line that touches but does not intersect a given curve. > B. a point of maximum slope. C. a measure of the steepness of a line. D. an activity level that generates highest profit. 10. The comprehensive impact resulting from a decision is the:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 A. gain or loss associated with a given managerial decision. B. change in total cost. C. change in total profit. > D. incremental change. 11. Statistics are: > A. descriptive measures for a sample. B. summary measures for the population. C. predetermined variables. D. endogenous variables. 12. The "middle" observation is the: > A. median. B. average. C. mean. D. mode. 13. A normally distributed test statistic with zero mean and standard deviation of one is the: > A. z-statistic. B. t-statistic. C. F-statistic. D. S.E.E. 14. A relation known with certainty is called a: A. statistical relation. B. multiple regression. > C. deterministic relation. D. simple regression. 15. The standard deviation of the dependent Y-variable after controlling for all X-variables is the: A. correlation coefficient. B. coefficient of determination. C.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 07/31/2011 for the course ECON 1201 taught by Professor Smith during the Spring '11 term at Waseda University.

Page1 / 8


This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online