- 20 Marks
Question
A manager that wants to be successful in his or her business environment should be able to make use of the various business analyses and models to know which products and markets to retain or grow.
Required:
a. Explain briefly the concept of macroeconomics and state the THREE approaches that can be used to measure total economic activity during a given period of time. (10 Marks)
b. List and explain briefly FIVE operations research techniques. (10 Marks)
Answer
a. Macroeconomics: The branch of economics that studies the behavior and performance of an economy as a whole, focusing on large-scale economic factors such as GDP, inflation, and unemployment.
Approaches to Measure Economic Activity:
- Gross Domestic Product (GDP)
- National Income Accounting
- Expenditure Method
b. Operations Research Techniques:
- Linear Programming: Optimizing resource allocation.
- Queuing Theory: Managing waiting lines.
- Inventory Control Models: Optimizing inventory levels.
- Decision Tree Analysis: Evaluating decisions under uncertainty.
- Simulation: Modeling real-world scenarios for problem-solving.
- Tags: Economic Activity Measurement, Macroeconomics, Operations Research
- Level: Level 1
- Topic: Basics of Business Finance and Financial Markets
- Series: NOV 2022
- Uploader: Theophilus