1st exam

Question 1

1. Marginal analysis

Answer 1

Leads to the optimization of economic processes & determines the impact that actions will take on changes.

prices, products, etc

Question 2

2. A decision will be considered favorable if

Answer 2

it will increase the income

Question 3

3. Principle of contribution

Answer 3

If it contributes, even if its little, it should stay

Question 4

4. Principle of maximization

Answer 4

Maximization of profits by achieving equilibrium between costs and income

Question 5

5. Principle of equimarginality

Answer 5

best mix to achieve maximum results

Question 6

6. Opportunity cost

Answer 6

Income that could be generated by using the second best option

Question 7

7. Relevance theory:

Answer 7

What is relevant to the study of economics

a. D
b. M
c. S

Question 8

8. Law of demand

Answer 8

The higher the price, the lower the quantity demanded

Question 9

9. Nothing in economics is neutral or without cost

Answer 9

it is necessary to quantify a priori al the costs from a decision made

Question 10

10. The company is productive entity susceptible to being affected in three areas:

Answer 10

a. Related to income
b. To costs
c. To financial aspects

Question 11

11. Before implementing a system of discounts, the company must analyze on the capacity to

Answer 11

maintain these in an environment where prices for inputs increases

Question 12

12. Valuation of economic impact

Answer 12

Any decision to produce anything must be made based on the economic impact on the company

Question 13

13. Consumer logic

Answer 13

Adherence of criteria, patterns of behavior and buying habits

Question 14

14. Utility satisfaction analysis

Answer 14

How consumers organize buying according to the relationship between utility and price

Question 15

15. Marginal utility satisfaction

Answer 15

Added satisfaction from getting one more

Question 16

16. Decreasing marginal utility:

Answer 16

one more unit, less satisfaction

Question 17

17. Rational Behavior

Answer 17

assumption to establish logic of utility satisfaction

Question 18

18. Indifference analysis

Answer 18

Measuring what consumers want and what they can acquire

Question 19

19. Indifference curve:

Answer 19

Result of combination of items with which the customer can obtain the same satisfaction

Question 20

20. Substitution effect

Answer 20

Lowering the price of a good, its relative price also lowers, consumers can purchase extra

Question 21

21. Demand curve

Answer 21

Negative slope

Question 22

22. Profitability of the company:

Answer 22

Generation of profits depend on the proper management of elements making up its operation

Question 23

23. Compound demand

Answer 23

Made up by different uses for an item

Question 24

24. Joint demand:

Answer 24

Demand in combination with another

Question 25

25. Derived demand:

Answer 25

Demand depends on the demand of another end product

Question 26

26. More accurately determining demand

Answer 26

Target market must be identified according to our product, setting litmits on time in terms of function of demand

Question 27

27. Changes in demand vs in quantity demanded

Answer 27

any variable that influences demand vs ocurring by changes on price

Question 28

28. Demand function

Answer 28

Qx f(Px,Mk,Y,Cr,Ad)

Question 29

a. Technical efficiency

Answer 29

Most efficient method will be the one using resources to produce greatest amount of goods

Question 30

b. Economic efficiency:

Answer 30

The most efficient process will be the one with less cost

Question 31

30. Production Function:

Answer 31

S=f(G,T,P1,Pi,F1)

Question 32

32. Marginal production

Answer 32

The additional unit produced by adding another worker

Question 33

33. Three phases of production:

Answer 33

a. Phase 1: average production reaches maximum level b. Phase 2: Last point to marginal production equals zero and average prod is max c. Phase 3: Pmg is negative, so TP is decreasing

Question 34

35. Cost function

Answer 34

Relationship between productivity and costs of inputs of a company

Question 35

36. Elastic demand products:

Answer 35

High sensitivity to price, if price rises you would substitute with another

Question 36

Not much sensitivity to price, if price rises you would still think about the same product

Answer 36

37. Inelastic demand products

Question 37

The optimal sales point

Answer 37

is when marginal cost equals marginal income or profit

Question 38

Economic scarcity and the enterprise

Answer 38

Scarce resources unlimited needs