Managerial Economics

Respond to the assigned questions using the lessons and vocabulary found in the reading.

Support your answers with examples and research and cite your research using APA format.

Start reviewing and responding to the postings of your classmates as early in the week as possible.

Respond to the following questions:

  • Spending by the consumer sector is the driving force in the US economic system. Although the business and government sectors make a considerable contribution to the success of the economy, it is the spending by the consumer or household sector of the economy that determines prosperity or recession in the economy. Do you agree or disagree with this argument? Why or why not? Support you answer with examples and references of how the business and government sectors of the economy are crucial in supporting spending by the household sector. How has the spending behavior of the government sector changed over the past decade, and what effect have these changes had on the economy?
  • Decision making in a business environment requires an understanding of cost and revenue data. This includes an understanding of marginal and incremental analysis, as well as basic cost and revenue relationships. Explain how a basic understanding of these concepts, as well as of managerial economics, can enhance the managerial decision-making process. Support your answer with examples and references.

Justify your choices with valid assumptions and logically driven arguments. Cite any sources using APA format.

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