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# essay

Mid-Term Exam, Managerial Economics, Spring 2014, Dr. Soon Paik, Name( )

1. O or X (True or False)

( ) (1) The present value of future profit is not related to financial market.

( ) (2) The relation between managers and team members is a principal-agent problem.

( ) (3) The optimum output is related to the production function.

( ) (4) The derivative is the average slope of function.

( ) (5) The optimum inputs are related to cost equation.

( ) (6) The optimum inputs are related to revenue function.

( ) (7) Reengineering is following other firm’s better processes.

( ) (8) The unemployment data is to be obtained from www.census.gov.

( ) (9) The monopolist’s demand function is the market demand function.

( ) (10) The perfect competitive firm’s demand function is the market demand function.

( ) (11) The long-run price elasticity of demand is inelastic.

( ) (12) The elastic cross-price of demand indicates the substitute goods.

( ) (13) The utility function is composed of quantities and prices.

( ) (14) The indifference curves can not cross each other.

( ) (15) The price line is nothing to do with the income level.

( ) (16) The optimum consumption is related to marginal utilities.

( ) (17) The chicken is a normal good related to beef.

( ) (18) The chicken is a normal good related to potatoes.

( ) (19) The substitute goods are related to own price changes.

( ) (20) The slope of indifference curve is the price ratio.

( ) (21) Watching customers’ behaviors is the custom clinics.

( ) (22) The -3.07 price elasticity of orange means inelastic.

( ) (23) The +1.56 cross-price elasticity of orange means substitute goods.

( ) (24) The +0.01 cross-price elasticity of orange means complement goods.

( ) (25) The regression line is the scatter diagram.

( ) (26) The regression line is the model.

( ) (27) The t > 2 means that estimated coefficients are zero.

( ) (28) Delphi method is a survey.

( ) (29) Optimum inputs are related to the input prices.

( ) (30) Returns to scale are related to iso-cost lines.

2. Summarize

(1) Managerial economics:

(2) Business ethics:

(3) Optimum rules for consumption:

(4) GDP components:

(5) Price/income/cross-price elasticity of demand:

(6) Managerial decision-making on elasticity:

(7) Consumption-price path and demand curve:

(8) Substitute goods and complement goods:

(9) Least-squared estimation:

(10) Model and scatter diagram:

(11) Estimated coefficients:

(12) R-square and t:

(13) Components of time series: