MANAGERIAL ECONOMICS

Final Examination

I. Multiple Choice: Indicate on your answer sheet the letter representing

your best choice for each item to be sent to my email
address:mstanjr@csu.edu.ph not later than 10:00am today, June 9, 2021.

1. A social science that studies the maximization of scarce resources in order to fulfil
unlimited human wants and needs.

a. Microeconomics c. Macroeconomics
b. Economics d. Managerial Economics

2. A branch of economics dealing with small economic entities.

a. International Economics c. Economics

b. Managerial Economics d. Macroeconomics

3. Management function directed to the identification of opportunities in the future.

a. Organizing c. Directing
b. Planning d. Controlling

4. Branch of economics dealing with the application of economic concepts, theories

and tools to solve practical problems in business.

a. Microeconomics c. Managerial Economics

b. Macroeconomics d. International Economics

5. An economic system characterized by profit as the main motive in doing business.

a. Capitalism c. Socialism
b. Mixed Market Economy d. Communism

6. The privilege to compete in business.

a. Cooperation c. Competition
b. Enterprise d. Cooperation

7. Father of Communism.

a. Adam Smith c. Karl Marx

b. Lenin d. Hitler

8. Produced goods used to produce more goods.

a. Interest c. Profit
b. Capital d. Land

9. Payment for labor.

a. Interest c. Profit
b. Salaries d. Rent

10. Statements that predict the relationships between economic variables.

a. Economic theory c. economic problem

b. Economic policy d. economic issue
11. Statements that predict the relationships between variables relating to how prices
are determined.

a. Economic theory c. economic problem

b. Price theory d. monetary policy

12. Market model involving a very large number of firms.

a. Pure competition c. Oligopoly

b. Monopoly d. Monopolistic competition

13. Whenever and wherever there is exchange of goods and services, there is:

a. Market c. price
b. Barter d. supply

14. The value of a good in terms of money.

a. Demand c. supply
b. Price d. equilibrium point

15. Total volume consumers want to buy.

a. Demand schedule c. equilibrium

b. Price floor d. aggregate demand

16. Excess of demand over supply.

a. Shortage c. surplus
b. Subsidy d. equilibrium

17. Example of substitute goods.

a. Coffee & milk c. smart & globe

b. Coke & biscuit d. coffee & sugar

18. A non price factor relating to possibility of substituting products.

a. Tastes and preferences c. income

b. Expectation of future prices d. size of population

19. The degree to which changes in prices affect demand and supply.

a. Elasticity c. demand
b. Supply d. price

20. Goods bought for the statusand prestige they give the buyer.

a. Normal goods c. inferior goods

b. Prestige goods d. substitute goods
 II. Graphing Exercise. Provided with the following demand and supply
schedule, plot a line graph showing the following:

a. The demand and supply curve c. area of shortage

b. Area of surplus d. equilibrium point

Supply and demand for beef

Price/kg Supply in kg. Demand in kg.

320 100 900
340 300 700
360 500 500
380 700 300
400 900 100

III. Answer the following questions as briefly but as adequately as possible.

1. What is the implication in pricing of a commodity of a good yielding a highly

elastic “price elasticity of demand”?
2. Why are luxury goods inelastic in terms of price elasticity of demand?
3. Name and explain a psychological factor affecting a consumer’s choice of a
commodity.
4. How may consumer behaviour be affected by their reference group? Explain.

ONLY THE ANSWER SHEET SHOULD BE SENT TO MY EMAIL ADDRESS!!