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, abovenormal 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 Xvariable determined separately from the Yvariable.
>
B.
a Yvariable determined by X values.
C.
a Yvariable determined prior to X values.
D.
a Yvariable 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:
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document2
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.
zstatistic.
B.
tstatistic.
C.
Fstatistic.
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 Yvariable after controlling for all Xvariables is the:
A.
correlation coefficient.
B.
coefficient of determination.
C.
This is the end of the preview.
Sign up
to
access the rest of the document.
 Spring '11
 smith
 Economics, National Income, Supply And Demand, Warren Buffett, MBA education, Danish Design

Click to edit the document details