NAME: VIENNA JHANE G.

MAMARIL
SECTION: BSA 1B

Do you still know the topic discussed last lesson on Fundamentals of Managerial?

Economics? Let's go back on the terms learned on the previous lesson.

Look at the puzzle and after, encircle or highlight the words being defined and write the

answer on the blank.

QUEUING
________________ 1. Involve decisions about installation of additional machines or hiring of extra labor
NEEDS
________________ 2. These are basic commodity for survival.
INFLATION 3. It is one of the central problems of the economy due to the increasing in the
________________
general level of prices of goods and services in an economy over a period.
MANAGERIAL ECONOMICS 4. It is the study how to direct scarce resources in the way most
_________________________
efficiently achieves a managerial goal.
LAND
________________ 5. Natural resources such as minerals, forests. Etc.
OPPORTUNITY 6. The cost for forgone alternative ENGAGE
________________
 SCARCITY
________________ 7. It is defined as a condition in which resources are not available

to satisfy all the needs and wants of specified groups of people.

MACROECONOMICS It is the study of entire economies and economic systems and specifically
____________________8.
considers.
RECESSION
________________ 9. It is defined as a period of two or more successive quarters of decreasing
production.
COMMAND
________________10. The answers to the basic economic problems are dictated by

the government through the head of the nation.

Answer the following questions based on the topic: Goals of a Firm (2pts each)

1. What are some of the forces that causes managers to act in the interest of

shareholders?

➢ Competitive pressure can cause the stock price of 4,444 bad companies to drop and, again, lead
to acquisitions. In many companies, managers' salaries are tied to performance. Managers often
obtain stock options. The value of stock options increases with rising stock prices. Therefore, the
manager will be interested in maximizing shareholder welfare.

2. Do you believe that profit-maximization model can be applied to the activities of a

multinational corporation? Explain.

➢ For me yes, since firms in other nations seek after objectives that the incorporate interface of
other bunches it will help the firms gets more benefit additionally it is a greatly valuable way
to see day-to-day. As long as firms attempt to take actions that will improve their earnings
within specific constraints.

3. Do you believe that profit maximization still represents the best overall economic

objective for today’s corporation?

➢ Yes, profit maximization remains the greatest overall economic goal for today's business. Profit
maximization is the goal of all businesses. When the market price of a share rises, shareholders
receive more money than they initially invested, increasing their wealth.

4. You have a choice of opening your own business of being employed by someone else in similar type of
business. What are some of the considerations in terms of opportunity costs that you would have to
include in arriving at your decision?

➢ For me I would consider my time and effort. Because I want to value my time and effort
accordingly based on the scenario. I want to know how much time will it takes and how it will
worth it for me.