ACYMANS12: Quantitative Analysis and Economics

A quantitative technique used for selecting the combination of resources that maximize profits or minimize costs is

a. PERT

b. Dynamic programming

c. Queuing theory

d. Linear programming

D

Linear programming models are mathematical techniques in which an objective function is maximized or minimized subject to constraints. These constraints must be fully specified before a linear programming problem can be solved, and generally described:

a. Costs

b. Inefficiencies

c. Resources

d. Dependent variables

C

A management consultant is scheduling a long-term research and development project. The time table is very tight due to the advent of the rainy season and to inadequate research and development staff complement. As the requirements are extensive and complex, what is the most appropriate approach for planning and controlling the government highway project?

a. Time-series or trend regression analysis

b. Cost-volume-profit analysis

c. Queuing theory analysis

d. Program evaluation review technique (PERT)

C

The process of adding resources to shorten selected activity times on the critical path in project scheduling is called

a. Crashing

b. Material-requirements planning

c. The Delphi technique

d. A branch-and-bound solution

A

When using the PERT method for network analysis, the critical path through the network is

a. The longest path through the network

b. The path with the most slack

c. The shortest path through the network

d. The least cost path

A

Refer to the information below pertaining to a project of a company which were derived from decision theory on decision making under risk:

Expected value with perfect information P50,000

Expected value without perfect information P42,100

Expected value of perfect information P7,900

Which of the following statements below is true?

a. Using the best strategy under uncertainty, it is expected that the company will earn P7,900

b. Under a certain decision-making environment, it is expected that the company will earn P42,100

c. The highest that a company would be willing to pay to gain access to perfect information is P50,000

d. None of the above

D

The calculation of reasonable probabilities about the future, based on the analysis of all the latest relevant information by tested and logically sound statistical and economic techniques, and applied in terms of an executive’s personal judgement and knowledge of his business is

a. Business forecasting

b. Project feasibility studies

c. Budgeting

d. Planning and control

A

An improvement in technology that in turn leads to improved worker productivity would most likely result in

a. A shift to the right in the supply curve and a lowering of the price of the output

b. A shift to the left in the supply curve and a lowering of the price of the output

c. An increase in the price of the output if demand is unchanged

d. Wage increases

A

If both the demand and supply for a good increase, the equilibrium quantity of the good will

a. Increase

b. Decrease

c. Remain the same

d. Not be predictable with only these facts

A

It is the ‘perfect’ price wherein the demand and supply curve intersect

a. Equilibrium price

b. Price ceiling

c. Price floor

d. None of the above

A

Which type of economic market structure is characterized by a few large sellers of a product or service, engaging primarily in nonprice competition?

a. Monopoly

b. Oligopoly

c. Perfect competition

d. Monopolistic competition

B

Which type of economic market structure is characterized by only one seller of a product or service having huge control over the price?

a. Monopoly

b. Oligopoly

c. Perfect competition

d. Monopolistic competition

A

A country’s Gross Domestic Product (GDP) is (are)

a. A measure of income and output

b. Market value of all final goods and services

c. Primary measure of the wealth of a country

d. All of the above

D

Under the Expenditure Approach, GDP is computed as:

a. C + I + G + X

b. Salaries and wages + profit + interest + rent + depreciation + taxes

c. GNP + income abroad

d. None of the above

A

Under the Income Approach, GDP is computed as:

a. C + I + G + X

b. Salaries and wages + profit + interest + rent + depreciation + taxes

c. GNP + income abroad

d. None of the above

B