KEY972S - BUSINESS 702 MANAGERIAL ECONOMICS SECOND EXAM KEY...

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

View Full Document Right Arrow Icon
BUSINESS 702 SECOND EXAM KEY SPRING 1997 MANAGERIAL ECONOMICS MULTIPLE CHOICE QUESTIONS (50 pts, 2pt each) 1. A forecast method based on the informed opinion of several individuals is called: A. personal insight. > B. panel consensus. C. the Delphi method. D. qualitative analysis. 2. A rhythmic annual pattern in sales or profits is called: A. cyclical fluctuation. B. secular trend. C. trend analysis. > D. seasonal variation. 3. Growth trend analysis assumes: A. constant unit change over time. B. irregular percentage change over time. C. sporadic unit change over time. > D. constant percentage change over time. 4. Economic relations that are true by definition are called: A. behavioral equations. B. statistical models. C. econometric relations. > D. identities. 5. Lagging economic indicators include: A. personal income. B. the change in stock prices. C. orders for new plant and equipment. > D. the average duration of unemployment. 6. The maximum output that can be produced for a given amount of input is called a: A. discrete production function. > B. production function. C. continuous production function. D. discontinuous production function. 7. The output effect of a proportional increase in all inputs is called: > A. returns to scale. B. returns to a factor. C. total product. D. marginal product. 8. As the quantity of a variable input increases, the resulting rate of output increase eventually: > A. falls. B. rises. C. becomes constant. D. none of these. 9. Ridge lines identify the: A. amount of one input that must be substituted for another to maintain constant output. > B. graphic bounds for positive marginal products.
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 C. least-cost production of a target level of output. D. different input combinations used to efficiently produce a specified output. 10. Economic efficiency is achieved when all firms equate the marginal: A. product and price for all inputs. B. cost of all inputs. > C. revenue product and price for all inputs. D. product of all inputs. 11. The amount paid under prevailing market conditions is: A. historical cost. B. opportunity cost. > C. current cost. D. replacement cost. 12. The change in cost caused by a given managerial decision is: A. implicit cost. > B. incremental cost. C. explicit cost. D. opportunity cost. 13. Costs that do not vary across decision alternatives are: A. implicit. B. explicit. > C. sunk. D. economic. 14. A cost-output relation for a specific plant and operating environment is the: > A. short-run cost curve. B. long-run total cost curve. C. long-run marginal cost curve. D. long-run average cost curve. 15. The output level at which short-run average costs are minimized is: A. minimum efficient scale. B. where multiplant economies of scale equal one. 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.

Page1 / 11

KEY972S - BUSINESS 702 MANAGERIAL ECONOMICS SECOND EXAM KEY...

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