I hope yo u can help me. You can type it so I can easily copy to my docs.

Test I: Essay. Instructions: Answer the following questions in not less than 3 sentences. Each question is equal to 5 points. 1. Why manager considers economics in making business decisions? 2. Why do producers sell more products when the price is high? 3. How do technologies affect changes in supply? 4. How does population influence changes in demand? Cite your own example. 5. Why do we experience surpluses and shortages? Explain your answer. 6. Why do some people go for more expensive goods rather than the cheaper goods? 7. What are the relationship between marginal product, average product and total product in production? 8. Distinguished fixed cost from variable cost. Why it is said that there is no fixed cost in the long-run? 9. Why do firms need to stop adding more inputs at a point where there is constant return to scale? 10. What is the concept of perfect competition? Is competition in a market helpful? 11. Why organization prepares master budget? 12. How is the flexible budget useful for variance analysis