. This market structure has a lot of competitors selling non-identical goods. A. Perfect competition C. Oligopoly B. Monopolistic competition D. Monopoly 2. What does a discount rate in the net present value signify? A. Amount of interest earned C. Firm's time and risk preference B. Amount needed by the firm D. Rate of firm's growth 3. Why does the value of money diminish over time? A. Inflation C. Decrease in consumer information B. Increase in competition D. Interest rates 4. Which disequilibrium profit theory is applicable to businesses with high capital requirements? A. Frictional profit theory C. Compensatory profit theory B. Innovation profit theory D. Monopoly profit theory 5. Which of these is NOT part of the three (3) basic economic questions? A. What commodities should be produced? B. How should those commodities be produced? C. Why should the commodities be produced? D. For whom are those commodities produced? 6. Which of these is a market-supplied resource? A. Owner's capital C. Time of the owners B. Buildings owned by the firm D. Labor of workers 7. How do interest rates affect the value of money? A. It makes money more valuable in the future. B. It allows firms to make business decisions. C. It tells firms how to save. D. It encourages risk taking. 8. Which of these is an implicit cost? A. Raw materials cost C. Interest expense B. Opportunity cost D. Utilities expense 9. Which of these is NOT included in the three (3) major areas of managers' tasks? A. Developing firm's goals B. Identifying firm's strategies. c.Approving firm's goals and strategies D. Acquiring resources needed for goals 10. How does the close interaction of firms affect businesses in an oligopoly? A. Firms compete for customers. C. Firms can impose exit barriers. B. Each firm gets more profit. D. Firms are mutually interdependent. 11. Which optimization technique would most likely be used if a firm wants to manage the progress of a project? A. Network Analysis C. Linear Programming B. Queuing Theory D. Decision Analysis 12. In an optimization problem, which of the following elements describes the limits on the values that variables can take? A. Decision variables C. Objective function B. Functional constraint D. Feasible solution 13. Which of these would result to profit maximization? A. MC = 0 C. MR < MC B. MR > MC D. MR = MC 14. Which of these would result in minimization of average cost? A. MC > AC. C. MC = AC B. MC < AC D. AC > TC 15. Which of these is the symbol for profit? A. ∆ C. π B. β D. λ
1. This market structure has a lot of competitors selling non-identical goods.
A.
B.
2. What does a discount rate in the
A. Amount of interest earned C. Firm's time and risk preference
B. Amount needed by the firm D. Rate of firm's growth
3. Why does the value of money diminish over time?
A. Inflation C. Decrease in consumer information
B. Increase in competition D. Interest rates
4. Which disequilibrium profit theory is applicable to businesses with high capital
requirements?
A. Frictional profit theory C. Compensatory profit theory
B. Innovation profit theory D. Monopoly profit theory
5. Which of these is NOT part of the three (3) basic economic questions?
A. What commodities should be produced?
B. How should those commodities be produced?
C. Why should the commodities be produced?
D. For whom are those commodities produced?
6. Which of these is a market-supplied resource?
A. Owner's capital C. Time of the owners
B. Buildings owned by the firm D. Labor of workers
7. How do interest rates affect the value of money?
A. It makes money more valuable in the future.
B. It allows firms to make business decisions.
C. It tells firms how to save.
D. It encourages risk taking.
8. Which of these is an implicit cost?
A. Raw materials cost C. Interest expense
B. Opportunity cost D. Utilities expense
9. Which of these is NOT included in the three (3) major areas of managers' tasks?
A. Developing firm's goals
B. Identifying firm's strategies.
c.Approving firm's goals and strategies
D. Acquiring resources needed for goals
10. How does the close interaction of firms affect businesses in an oligopoly?
A. Firms compete for customers. C. Firms can impose exit barriers.
B. Each firm gets more profit. D. Firms are mutually interdependent.
11. Which optimization technique would most likely be used if a firm wants to manage the
progress of a project?
A. Network Analysis C. Linear Programming
B. Queuing Theory D. Decision Analysis
12. In an optimization problem, which of the following elements describes the limits on the
values that variables can take?
A. Decision variables C. Objective function
B. Functional constraint D. Feasible solution
13. Which of these would result to profit maximization?
A. MC = 0 C. MR < MC
B. MR > MC D. MR = MC
14. Which of these would result in minimization of average cost?
A. MC > AC. C. MC = AC
B. MC < AC D. AC > TC
15. Which of these is the symbol for profit?
A. ∆ C. π
B. β D. λ
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