Managerial Economics (Midterm: T or F)

• False - Okoynimiya is the Greek Word for Economics
• True - Adam Smith is the Father of Economics
• True - Economics deals with how to satisfy the limited wants and needs of humans with the unlimited resources we have
• False - Aristotle is the Father of Economics
• False - Stagnation helps managers recognize how economic forces affect organizations and describes the economic consequences of managerial behavior
• False - The Two Branches of Economics are Managers and Stockholders
• True - Scarcity means that resources are limited for the unlimited wants of man
• True - Macroeconomics is an aggregate view of the economy
• True - Management are guidance, leadership and control of the efforts of a group of people towards some common objective
• False - The formula for Price Elasticity of Demand is Percentage Change in Quantity demanded is equal to Percentage Change in Price divided to Price Elasticity of Demand.
• True - Exogenous Variables are the factors outside the control of the firm
• False - Consumer Basket is a combination of goods and services
• False - Cardinal Total Utility and Ordinal Marginal Utility are the two-measuring utility
• True - Budget Line is also known as Budget Constraint
• False - Innovation is the key when your product reaches the highest satiety
• False - Utility is tangible
• False - Sellers always prefer more to less of any good or service
• False - Marginal formula is change in marginal utility divided by change in number of prices
• True - Perfect substitutes are goods and services that satisfy the same need or desire
• True - Perfect complements are goods and services consumed together in the same combination
• False - When we graph Perfect complements, it shows a vertical line
• False - When we graph Imperfect Substitutes, it shows a L line
• False - Equation for Budget line is Total Budget = Spending on Goods + Spending on Demand
• False - A plot of the relationship between income and the quantity consumed of a good or service is called an Ernst Engle
• True - Market is the place where buyers and sellers meet
• False - Demand is the quantity of goods or services buyers are willing and able to buy
• False - Major factor affecting demand and supply is Income
• True - Law of Demand as Price increases, quantity demands will decrease ceteris paribus
• True - Supply is the quantity of Goods or services consumers are willing and able to sell at different prices
• False - Law of Supply as price decreases, quantity supplied will also increase ceteris paribus
• True - Market Equilibrium is where quantity demanded is equal to the quantity supplied
• True - Utility Theory is the ability of goods and services to satisfy consumer wants as the basis for consumer demand
• False - Market Basket is the bundle of items desired by the consumers that reflect the combinations of goods and services available in the marketplace
• False - Marginal Utility measures the added revenue derived from a 1-unit increase in consumption of a particular good or service, holding consumption of other goods and services constant
• False - Indifference curves represent all market baskets that provide a given consumer the same amount of utility or satisfaction
• False - Imperfect substitutes are goods and services that satisfy the same need or desire.
• False - Perfect substitutes are goods and services consumed together in the same combination
• True - Perfectly Inelastic Demand coefficient is Zero
• True - Perfectly Elastic Demand coefficient is infinity or math error.
• True - Unitary Elastic Demand coefficient is equal to 1