Managerial Economics and Market Research

<p>What social beliefs must be considered? (B)</p> Signup and view all the answers

<p>Practical decision-making in business context (B)</p> Signup and view all the answers

<p>Forecasting based on demand and supply (B)</p> Signup and view all the answers

<p>Managerial economics is based on normative economics principles. (C)</p> Signup and view all the answers

<p>Evaluating the political climate of the market (A)</p> Signup and view all the answers

<p>D.I. = Personal Income - Personal Direct Tax (C)</p> Signup and view all the answers

<p>GDP = C + I + G + (X - M) (B)</p> Signup and view all the answers

<p>Income from self-employment (D)</p> Signup and view all the answers

<p>GDP would likely increase due to repair production. (A)</p> Signup and view all the answers

<p>More than six consecutive months of output decline. (C)</p> Signup and view all the answers

<p>They provide a measure of economic progress in a country. (D)</p> Signup and view all the answers

<p>Corporate taxes (C)</p> Signup and view all the answers

<p>Private income (D)</p> Signup and view all the answers

<p>The welfare of human beings (C)</p> Signup and view all the answers

<p>The relationship between ends and scarce means (C)</p> Signup and view all the answers

<p>Resources that are limited and have alternative uses (A)</p> Signup and view all the answers

<p>The need for making choices (B)</p> Signup and view all the answers

<p>Opting for the choice that yields the most personal benefit (D)</p> Signup and view all the answers

<p>It serves as a link between theory and practical decision-making. (A)</p> Signup and view all the answers

<p>Optimum utilization of scarce resources (D)</p> Signup and view all the answers

<p>Forfeiting all other alternatives for one selected option (B)</p> Signup and view all the answers

<p>To stimulate aggregate demand through infrastructure spending (D)</p> Signup and view all the answers

<p>Implement credit control measures (B)</p> Signup and view all the answers

<p>Progressive taxation (C)</p> Signup and view all the answers

<p>Shortages and black markets (A)</p> Signup and view all the answers

<p>By ensuring jobs for workers in loss-making units (A)</p> Signup and view all the answers

<p>To support the unemployed and destitute (A)</p> Signup and view all the answers

<p>They make essential goods more accessible to the poor (D)</p> Signup and view all the answers

<p>To keep the cost of living manageable (A)</p> Signup and view all the answers

<p>To plan for future production based on estimates (D)</p> Signup and view all the answers

<p>Elastic demand (B)</p> Signup and view all the answers

<p>Salt (A)</p> Signup and view all the answers

<p>Pe = % change in quantity demanded ÷ % change in price (B)</p> Signup and view all the answers

<p>Little to no increase in demand despite price decrease (D)</p> Signup and view all the answers

<p>Income elasticity of demand (C)</p> Signup and view all the answers

<p>They typically have inelastic demand. (C)</p> Signup and view all the answers

<p>High elastic demand (B)</p> Signup and view all the answers

<p>To control monopolistic tendencies in the economy (D)</p> Signup and view all the answers

<p>Rail and road transport (B)</p> Signup and view all the answers

<p>Access to essential goods (D)</p> Signup and view all the answers

<p>To manage the negative effects on the economy and public welfare (D)</p> Signup and view all the answers

<p>Inflation and depression (B)</p> Signup and view all the answers

<p>To recommend necessary actions against monopolies (A)</p> Signup and view all the answers

<p>It is aimed at correcting adverse outcomes for society. (A)</p> Signup and view all the answers

<p>To ensure poor individuals can afford basic necessities (B)</p> Signup and view all the answers

The use of economic principles to make business decisions.

Sociology, psychology, and other social sciences help understand consumer behavior and market trends. This is valuable for market research and decision making.

A key decision in managerial economics: identifying products or services that meet market demand and create profit.

Another crucial decision: determining the most efficient production methods, including labor, technology, and resources.

Deciding the quantity of a product or service based on demand estimations and production constraints.

Understanding the target audience and their needs, preferences, and purchasing power.

Evaluating the total cost of production, including materials, labor, and overhead, to determine profit margins.

Setting a price for a good or service that balances profit goals with customer expectations.

The study of how individuals and societies make choices about using limited resources to satisfy unlimited wants.

The fundamental concept in economics that resources are limited, but wants are unlimited.

The value of the next best alternative forgone when making a choice.

The process of selecting the best option among several alternatives by weighing costs and benefits.

The overall well-being and happiness of individuals in society, often considered an important goal of economic activity.

The concept that limited resources can be used for multiple purposes, requiring choices and prioritizing.

The goal of economic choice, seeking to gain the greatest possible benefit from the available resources.

Predicting future demand for a product based on factors like finance, space, manpower, and materials.

A situation where a change in price significantly impacts the quantity demanded. If the price falls, demand increases substantially.

A situation where a change in price has little or no effect on the quantity demanded. Even when the price drops, demand stays the same or increases only slightly.

Measures how much the quantity demanded of a product changes in response to a change in its price.

A general concept that explains how much the quantity demanded of a product changes in response to changes in various factors.

Measures how much the quantity demanded of a product changes in response to a change in consumer income.

Measures how much the quantity demanded of one product changes in response to a change in the price of another product.

In elastic demand, a change in price leads to a proportionally larger change in quantity demanded. For example, if the price of a product decreases by 10%, the quantity demanded might increase by 20%.

Government actions to stabilize the economy by counteracting economic cycles (booms and busts). They increase spending during recessions to boost demand and reduce spending during inflation to curb demand.

The government increases spending, often on infrastructure projects, to create jobs and stimulate demand during a recession.

The government reduces spending, raises taxes, and controls credit to reduce money supply and combat inflation.

Government intervention when markets fail to meet essential human needs, such as providing assistance to the unemployed, destitute, and elderly.

A tax system where higher-income earners pay a larger percentage of their income in taxes. Examples include income tax, estate tax, and succession tax.

Government intervention to regulate prices for specific goods by setting maximum or minimum prices. This is usually implemented for essential goods like food.

Price control aims to maintain affordability for essential goods during times of inflation, especially for low-income individuals.

Long-term price control can lead to shortages, reduced quality, and black markets due to artificial price manipulation.

When one company controls a large share of the market, potentially leading to unfair pricing and reduced consumer choices.

The government takes ownership and control of certain industries, often essential services like electricity and water, to ensure fair access and pricing.

The government steps in to regulate or control the market, usually to protect consumers and address market failures.

Unstable prices in a market, often causing inflation (prices rising) or depression (prices falling), impacting consumers differently.

When prices of goods and services rise quickly, making it harder for people with fixed incomes to buy essentials.

A severe economic downturn with high unemployment, low production, and reduced consumer spending.

Limiting the amount of goods or services available to each person, often done during shortages or emergencies.

A minimum price set by the government for certain goods, designed to protect producers and ensure supply.

The total income received by households in an economy before paying direct taxes. It includes wages, salaries, profits, rent, and government transfer payments.

The amount of income households have left after paying taxes. It represents the amount households have available for spending or saving.

GDP can be calculated by adding up all spending on goods and services in an economy. This includes consumer spending, investment, government spending, and net exports (exports minus imports).

GDP can also be calculated by adding up all the incomes earned in the production of goods and services. This includes wages, salaries, profits, rent, and interest.

A natural disaster, like a devastating earthquake, is likely to reduce a country's GDP in the short term due to the destruction of infrastructure and resources.

A recession is generally defined as a significant decline in economic activity, marked by at least two consecutive quarters (six months) of negative GDP growth.

National income estimates are crucial for understanding the health and performance of an economy. They provide insights into economic growth, living standards, and potential policy interventions.