{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ch01 - File Ch01 CHAPTER 1 Introduction to Economic...

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

View Full Document Right Arrow Icon
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
Background image of page 1

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

View Full Document Right Arrow Icon
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
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.

{[ snackBarMessage ]}