1. Give at least three (3) managerial decision areas in Managerial Economics and explain briefly their importance. 2. Explain the four (4) scopes of managerial economics. 3. Differentiate microeconomics from macroeconomics. Give an example. 4. Draw and explain the demand curve. 5. Draw and explain the supply curve. 6. Explain the relevance of supply and demand theory. 7. What are the stages of business cycle and explain each stages. 8. this explain economic growth, the increase in output per capita of a country over a long period of time. The same factors are used to explain differences in the level of output per capita between countries, in particular why some countries grow faster than others, and whether countries converge at the same rate of growth. 9. is the relation of the quantity that all buyers would be prepared to purchase at each unit price of the good. 10. is the relation between the price of a good and the quantity available for sale at that price.Managerial decision areas include: . assessment of investible funds - selecting business area . choice of product 1- determining optimum output . sales promotion. Scope Managerial economics to a certain degree is prescriptive in nature as it suggests course of action to a managerial problem. Problems can be related to various departments in a rm like production, accounts, sales, etc. 1. Demand decision. 2. Production decision. 3. Theory of exchange or price theory. 4. All human economic activity. Business Cycle The economics of a depression were the spur for the creation of \"macroeconomics\" as a separate discipline eld of study. During the Great Depression of the 1930s, John Maynard Keynes au- thored a book entitled The General Theory of Employment, Interest and Money outlining the key theories of Keynesian economics. Keynes contended that aggregate demand for goods might be insufcient during economic downturns, leading to unnecessarily high unemployment and losses of potential output. Expansion Boom Recession Depression IrI-'I ' Abasic illustration of economic/business cycles. He therefore advocated active policy responses by the public sector, including monetary policy actions by the central bank and scal policy actions by the government to stabilize output over the business cycle. Thus, a central conclusion of Keynesian economics is that, in some situations, no strong automatic mechanism moves output and employment towards full employment levels. John Hicks' IS/LM model has been the most inuential interpretation of The General Theory. Over the years, understanding of the business cycle has branched into various research programmes, mostly related to or distinct from Keynesianism. The neoclassical synthesis refers to the reconciliation of Keynesian economies with neoclassical economics, stating that Keynesianism is correct in the short run but qualied by neoclassical-like considerations in the intermediate and long run. New classical macroeconomics, as distinct from the Keynesian View of the business cycle, posits market clearing with imperfect information. It includes Friedman's permanent income hypothesis on consumption and \"rational expectations\" theory, led by Robert Lucas, and real business cycle theory. In contrast, the new Keynesian approach retains the rational expectations assumption, however it assumes a variety of market failures. In particular, New Keynesians assume prices and wages are \"sticky\