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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: