Managerial Economics Quiz 1

What are the economic conditions in our particular market?

• The market is experiencing a recession with high unemployment and declining consumer spending.
• Economic conditions are marked by rapid inflation and stagnant growth in the market.
• The market is thriving with extremely low inflation and high unemployment rates.
• The economic conditions in our market are characterized by moderate growth, high unemployment, unstable inflation, and increasing consumer spending.

What are additional economic conditions in our particular market that a manager must consider?

• Tax rates, wage levels, government regulations
• Inflation rates, unemployment levels, consumer confidence, interest rates, and market competition.
• Supply chain disruptions, technological advancements, seasonal trends
• Global trade agreements, currency exchange rates, environmental policies

What is our strategy to maintain a competitive advantage in the market?

• Focus solely on reducing prices without innovation.
• Our strategy includes innovation, customer satisfaction, cost leadership, and strategic partnerships.
• Ignore customer feedback and preferences.
• Limit partnerships to only local businesses.

What are the risks involved in doing business?

• Financial risks, operational risks, compliance risks, reputational risks, strategic risks.
• Environmental risks
• Employee satisfaction risks
• Market saturation risks

What factors lead to competitive advantage for a firm?

• Unique resources, superior technology, strong brand reputation, cost leadership, effective supply chain management, and innovation capabilities.
• High employee turnover
• Limited market presence
• Outdated business model

cNon-price determinants of demand-result determinants of demand-result

• Price elasticity of demand
• Market supply factors
• Non-price determinants of demand include consumer preferences, income, prices of related goods, expectations, and demographics.
• Consumer satisfaction levels

Non-price determinants of supply includes

• Price elasticity of demand
• Consumer preferences
• Production costs, technology, number of suppliers, expectations, government policies.
• Market demand fluctuations

If the price of crude oil increase, what will happen to the manufacturing firms?

• Manufacturing firms will benefit from lower production costs.
• Manufacturing firms will face higher production costs and may increase prices or reduce output.
• Manufacturing firms will not be affected by crude oil prices.
• Manufacturing firms will increase output without changing prices.

If the firms have to raise wages of the labour under new law, what will happen the supply?

• The supply will increase.
• The supply will remain unchanged.
• The supply will decrease.
• The supply will fluctuate unpredictably.

What impact do you think cloud computing will have on the demand for stand-alone applications such as storage devices for computers?

• The demand for stand-alone applications and storage devices will likely decrease due to the rise of cloud computing.
• The demand for stand-alone applications will increase as more users prefer offline access.
• Cloud computing will have no effect on the demand for storage devices.
• Stand-alone applications will become more popular due to their enhanced features compared to cloud services.