File: Ch01; CHAPTER 1:
Introduction to Economic Decision Making
Each question contains a code showing the section of the chapter text from which it was taken. The
codes for this chapter are:
Code
Section
1
Introduction
2
Seven Examples of Managerial Decisions
3
Six Steps to Decision Making
4
Private and Public Decisions
MULTIPLE CHOICE
1.
A sensible decision should incorporate a
a)
List of alternative courses of action.
b)
Complete prediction of the future.
c)
Statement of goals and objectives.
d)
Summary list of pros and cons.
e)
Answers a and c are both correct.
ANSWER: e.
SECTION: 1
2.
Managerial economics can best be defined as the
a)
Economic analysis of internal management functions.
b)
Study of economic incentives in organizations and markets.
c)
Impact of global economic factors on business.
d)
Analysis of major management decisions using economic tools.
e)
None of the above answers is correct.
ANSWER: d
SECTION: 2
3.
Is profit maximization an unambiguous guide to decision making in the private sector?
4.
Are models helpful in predicting the outcomes of decisions?
1-1
This
preview
has intentionally blurred sections.
Sign up to view the full version.
Introduction to Economic Decision Making
a)
No, models are too theoretical to be applicable in real world decisions.
b)
No, because there is too much uncertainty to ever forecast outcomes accurately.
c)
Yes, even though they simplify the analysis and omit some features of the problem.
d)
Yes, models can describe situations in complete detail.
e)
Yes, but large-scale models tend to be prohibitively expensive.
ANSWER: c
SECTION: 3
5.
The two main kinds of models are
6.
Sensitivity analysis can best be defined as
This is the end of the preview.
Sign up
to
access the rest of the document.
- Fall '08
- BARKLEY
- Decision Making, economic decision
-
Click to edit the document details
