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:

1.List the artwork name and location.
2.Write your first impression of the artwork.
3.Describe the visual details using the Visual Elements and the Principles of Design.
4.Write how your first impression changed after your visual analysis.