I. Define the following terms/concepts in FIVE words only. 1. Scarcity - limited resources fulfilling unlimited wants 2. Efficiency - small input equals biggest output 3. Economics - wealth accumulation and wealth utilization 4. Microeconomics - study of individual economic behavior 5. Macroeconomics - study of whole economic behavior 6. Managerial Economics - economic theory with managerial practice 7 Normative Science - highly subjective and value-based 8. Positive Science - highly objective and fact-based II. Discuss one of the SCOPES of Managerial Economics in TWO sentences ONLY. Profit Analysis Profit Analysis as a scope of managerial economics implies the need of profit planning and profit management for an entity to attain higher profit. We all know that profit is the chief measure of the success of ones firm, having the profit plan, managers or owners can reduce the uncertainty of executing business activities that will result to productivity and productivity means higher profits and this becomes the success of a business. How managerial economics differs from economics, accountancy and its relationship with management. (Maximum of FIVE sentences only) Managerial economics is the combination of economic theory or concepts with the managerial practice and it is just a “special branch” of “economics” guiding managers in making managerial decisions for an entity. Economics differs from managerial economics in a way that it deals with how humans make decisions in the face of scarcity and this is the foundation of those economic concepts and theory use in managerial economics or use by managers in decision making. On the other hand, accountancy or accounting differs from managerial economics in a sense that accountancy is a profession wherein accountants are responsible in recording, analyzing and reporting financial information about the enterprise in making decisions while managerial economics helps managers make decisions by applying the economic theories or concepts. Economists are concerned with the bigpicture trends that drive money while accountants tracks the inflow and outflow of money. Moreover, “management” is one of the “nature” of managerial economics that is a purposive process meaning there is always a purpose or objective when managers guide, lead, and control the whole organization with the application of economic theories and by this a business will be successful.