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First Exam Practice Questions

# First Exam Practice Questions - Practice Test Questions...

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Practice Test Questions First Exam Demand & Price Analysis 11:373:422 Chapter 1 ____ 1. Managerial economics uses ____________ to help managers solve problems. a. formal models b. prescribed behavior c. quantitative methods d. microeconomic theory e. all of the above ____ 2. If the annual interest rate is i , the present value of \$ X to be received at the end of each of the next n years is: ____ 3. You’ve just won the \$25 million lottery. You are going to receive a check for \$1 million today and at the end of every year for the next 24 years. If the interest rate is 10 percent, the present value of your prize is: ____ 4. In managerial economics, managers are assumed to maximize: ____ 5. Economic profits may result from: a. innovation b. risk taking c. exploiting market inefficiencies d. all the above e. a and b 1

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____ 6. Managers may make decisions that are not consistent with the goals of stockholders. This is referred to as the _____ problem. ____ 7. California imposes strict new regulations on the blending of gasoline that increase production costs. As a result, the: Figure 1 ____ 8. In Figure 1, the equilibrium price and quantity are: 2
____ 9. In Figure 1, there will be an excess supply at any price: a. above P b b. below P b c. other than P b d. below P a e. above P c Ch1 Answer Section 1. ANS: E PTS: 1 2. ANS: C PTS: 1 3. ANS: B PTS: 1 4. ANS: D PTS: 1 5. ANS: D PTS: 1 6. ANS: A PTS: 1 7. ANS: D PTS: 1 8. ANS: B PTS: 1 9. ANS: A PTS: 1 3

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Chapter 2 ____ 1. The demand curve’s usual slope implies that consumers: ____ 2. A market demand curve is likely to shift to the right when: ____
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First Exam Practice Questions - Practice Test Questions...

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