BAM 040: Managerial Economics

Student Activity Sheets Module #1

Name: REYMARK L, BALDO

Section: BAM 040

2) Activity 1: What I Know Chart (3 min)

Direction: For this activity, you need to write your answers on the column “What I Know”
based on the questions on the second column. Do not write anything on the third column
until you are told to do so.

What I Know Questions: What I Learned (Activity 4)

Managerial economics is a branch of 1. What is Managerial Managerial Economics can be

economics which deals with the
application of the economic
concepts, theories, tools, and
methodologies to solve practical
problems in a business these
business
Economics? defined as amalgamation of
economic theory with business
practices so as to ease decision-
making and future planning by
management.

Microeconomics studies the 2. How does it relate  Microeconomics is the study of

decisions of individuals and firms to
allocate resources of production,
exchange, and consumption.
Microeconomics deals with prices
and production in single markets and
the interaction between different
markets but leaves the study of
economy-wide aggregates to
macroeconomics.
to microeconomics? individuals, households and
firms' behavior in decision
making and allocation of
resources. It generally applies to
markets of goods and services
and deals with individual and
economic issues.
B. MAIN LESSON
1) Activity 2: Content Notes (10 min)
You can highlight important words or phrases related to the topic.

What is Managerial Economics?

1. Managerial economics is a stream of management studies which emphasizes
solving business problems and decision-making by applying the theories and
principles of microeconomics and macroeconomics. It is a specialized stream
dealing with the organization’s internal issues by using various economic theories.

2. According to Baye, managerial economics is the study of how to direct scarce

resources in the way that most efficiently achieves a managerial goal. In line with this, a
manager is seen as a person who directs resources to achieve a stated goal.

3. According to Salvatore (2004), managerial economics is described as the

application of economic theory and the tools of analysis of decision science to
examine how an organization can achieve its aims or objectives most efficiently.

4. Managerial economics is defined as the utilization of managerial skills in the

business by applying economic theories and concepts to maintain efficiency in
costing and production and its effectiveness on every decision making by the
firms to fully maximize their profits.
 1. Identify Goals and Constraints

The first step in making sound decisions is to have well-defined goals because
achieving different goals entails making different decisions. If your goal is to maximize
your grade in this subject rather than maximize your overall grade point average, your
study habits will differ accordingly. In every decision, the decision maker faces
constraints that affect the ability to achieve a goal.

Constraints are an artifact of scarcity. Constraints make it difficult for managers to

achieve goals such as maximizing profits or increasing market share. These constraints
include such things as the available of technology and the prices of inputs used in
production. The goal of maximizing profits requires the manager to decide the optimal
price to charge for a product, how much to produce, which technology to use, how much
of each input to use, how to react to decisions made by competitors and so on.

2) Activity 3: Skill-Building Activities

Before the start of our official discussion about the topic, let’s have some reflections in
order to assess and give you directions towards your journey in achieving your dreams.

What is your DEEPEST “WHY” in pursuing this course?

WHY? Because this course why I’m pursuing because a lot of reason why this course but

suddenly I didn’t know what are the exact of my mindset why did I choose this course?

simply because this is my dream and I would like to achieve this goal

What are your goals in life?
1. My goals in life to graduate this 1. for my constraints
course to find a good job to
bring me success
2. My goals in life have a good
family I can provide what is
needed
What are the What are your strategies in order to
constraints in overcome those constraints?
achieving your
goals?
1, I’m always pray to stay away my
in achieving my goal negative thoughts
is to look down my
self
2. for my constraints 2. stay positive and never give up
in achieving my goal
is financial

3. My goals in life to travel and to 4. for my 3. stay healthy and eat foods
explore constraints in healthy and exercise
achieving my
goal is pandemic
 3) Activity 4: What I Know Chart (2min)
For this part, you need to revisit the Activity 1. I want you to write all the things you’ve
learned on the third column “What I Learned”. Take time to compare your initial and final
understanding after studying this topic. I hope you gain additional knowledge.

I learned this topic to know the what is making decisions and allocation of
resources.

Resource allocation is a key challenge for healthcare decision makers. While

several case studies of organizational practice exist, there have been few large-
scale cross-organization comparisons.\

4) Activity 5: Check for Understanding (5min)

Direction: Based on the definition of managerial economics on the concept notes, I want
you to choose five words or phrases that you think are closely related to the subject
matter and explain why you choose them. Don’t worry because there is no right or wrong
answers here.

Words/Phrases you Choose Explanation

1. 1, every single day we
daily decisions need to daily decisions

2. 2. this we called we need

Power of long term planning decisions to think multiple until you
get what you plan
3. 3. practical problems this a
practical problems ordinary factor of business

4. 4. economic concepts is
economic concepts for me, this is a scarcity,
supply and demand, costs
and benefits, and
incentives
5. 5. this a individual
Branch of economic consumers and producers
 B. Think about your Learning

1. What is the most important lesson you gained on this session?

-The most important I learned this topic decision making

2. What will you do next session to maintain or improve your performance?

-I will improve myself to high performance and getting a good grade

FAQ
1. Who was the father of Economics?
Adam Smith was an 18th-century Scottish economist, philosopher, and author who is
considered the father of modern economics. His most notable contribution to the field of
economics was his 1776 book,
“An Inquiry into the Nature and Causes of the Wealth of the Nations.”

Key to Corrections

Skill-Building Activities

1. Answers may vary.

Check for Understanding

1. Answers may vary.