管理经济学(全英版)简答题.docxVIP

1.Which concept--the business profit concept or the economic profit concept--provides the more appropriate basis for evaluating business operations? Why?ANSWERThe economic profit concept provides the most appropriate basis for evaluating the operations of a business since it allows for a risk-adjusted normal rate of return on all capital devoted to the enterprise. Even when business profits are substantial, economic profits can sometimes be negative given the effects of risk, inflation, and other factors. Substantial business profits are no guarantee to the growth, or even maintenance, of capital investment. In actual practice, investors adjust reported accounting data to account for additional factors that must be considered.2.Distinguish between a supply function and a supply curve.书上P54.P563. The Energy Department estimates that domestic demand for natural gas will grow by more than 40% between now and 2025. Distinguish between a demand function and a demand curve. What is the difference between a change in the quantity demanded and a shift in the demand curve?ANSWERA demand function is a statement of the relation between the demand for a product and all variables (factors) that affect demand. The demand curve, on the other hand, is an expression of the relation between price and the quantity demanded, holding constant the effect of all other demand influencing variables. Movement along a demand curve describes the relation between price changes and the quantity demanded. Shifts in a demand curve or changes in demand indicate the effect on demand of changes in one or more of the nonprice variables in the demand function.4. Describe the difference between direct demand and derived demand.ANSWERDirect demand is consumption demand for goods and services. Direct demand is demand by consumers based on the satisfaction or utility derived from consumption. Derived demand is indirect in the sense that it represents demand by producers based on the usefulness o