The University of Manila

AE- 11, Managerial Economics

Preliminary Examination

Name:
Course/Section:

Instruction: Write True or False. Use the last page for your answers.

1) Economics is the study of production, distribution and consumption of goods and services.

2) Microeconomic approach is essential for understanding the behavior of atomic entities in an

economy.

3) Macroeconomic approach provides measure and theories to understand the overall systemic
behavior of an economy

4) Managerial Economics is Applicable to Different Types of Organization

5) Revenue is the total monetary value of the goods or services sold.

6) Cost is the collective expenses incurred to generate revenue over a period of time, expressed in terms
of monetary value.

7) The marginal revenue measures the change in revenue in response to a unit increase in production
level or quantity.

8) The marginal cost measures the change in cost corresponding to a unit increase in production level or
quantity

9) A consumer is someone who makes consumption decisions for herself or for her household unit.

10) Long run decision are decisions affecting consumption far enough into the future so that any such
adjustment can be made.
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METODIO S. ARROYO
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METODIO S. ARROYO