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Onlinetests ReviewTestSubmission:Quiz4
ReviewTestSubmission:Quiz4
User
MphoMothusi
Course
EMIC2714BFNON
Test
Quiz4
Started
5/8/1611:15PM
Submitted
5/8/1611:59PM
DueDate
5/11/1611:59PM
Status
NeedsGrading
AttemptScore
5outof20points
TimeElapsed
43minutes
Results
Displayed
AllAnswers,SubmittedAnswers,CorrectAnswers,Feedback,IncorrectlyAnswered
Questions
Question1
0outof1points
Becauseofthesubstitutioneffect,laboursupply
SelectedAnswer:
hasnodefinableshape.
Answers:
tendstobeupwardsloping.
tendstobedownwardsloping.
tendstobevertical.
hasnodefinableshape.
tendstobehorizontal.
Question2
0outof1points
RefertoExhibit1.Iftheexhibitrepresentsanegativeexternalitysituation,thenetsocial
costofexpandingoutputfromQ2toQ1istheareaof
SelectedAnswer:
BEA.
Answers:
ABC.
BEA.
Q2BAQ1.
Q2EAQ1.
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Question3
1outof1points
Ifnaturalmonopoliesareregulatedtoproducewherethereisresourceallocative
efficiency,theyproducewhere
SelectedAnswer:
Answers:
priceequalsmarginalcost.
priceequalsaveragetotalcost.
marginalrevenueequalsmarginalcost.
priceequalsmarginalcost.
marginalrevenueequalsaveragetotalcost.
Question4
1outof1points
RefertoExhibit5.Ifapositiveexternalityexiststhenthesociallyoptimaloutputis
SelectedAnswer:
Answers:
Q2.
Q1.
Q2.
Q1Q2.
Q2Q1.
Question5
1outof1points
Anincreaseinthewageratehasanincomeeffectandasubstitutioneffect,which
operateinoppositedirections.Ifthesubstitutioneffectdominates,thelaboursupply
curve
SelectedAnswer:
isupwardsloping.
Answers:
isupwardsloping.
isvertical.
isdownwardsloping.
ishorizontal.
haszeroelasticity.
Question6
0outof1points
Whichofthefollowingstatementswouldberepresentedbyabackwardbendinglabour
supplycurve?
Selected
Answer:
Answers:
Highrankingexecutivesaremorelikelytoworkpast5:00p.m.thanare
middlemanagers.
AR50,000ayearprofessorworksmorehoursthanaR20,000ayear
professor.
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ReviewTestSubmission:Quiz4EMIC2714BFNON
TheCEOofamajorcomputermanufacturerworksmorehoursthanthe
unionworkers.
Theownersofasuccessfulbusinessworkfewerdaysthandotheir
employees.
Hospitaljanitorsworkfewerhoursthandoesthechiefofobstetrics.
Highrankingexecutivesaremorelikelytoworkpast5:00p.m.thanare
middlemanagers.
Question7
1outof1points
Thebackwardbendingsupplycurveoflabourisderivedfromtheconceptthat
Selected
Answer: workerswillinitiallyincreasethenumberofhoursworkedasthewagerate
risesbutwouldreducethenumberofhoursworkedatveryhighwagerates.
Answers: workers'backsgettiredasthenumberofhoursworkedincreases,sothey
reducetheirsupplyoflabour.
workerswillinitiallyincreasethenumberofhoursworkedasthewagerate
risesbutwouldreducethenumberofhoursworkedatveryhighwagerates.
workerswillalwayssubstituteleisureforadditionaltimeonthejobnomatter
whatthewagerateis.
workersarelazyandwillonlyincreasethenumberofhoursworkedifthe
wagerateincreases.
Noneoftheabove.
Question8
0outof1points
TheCoasetheoremstatesthat
Selected
Answer: positiveexternalitiesaredirectlyrelatedtotheweatherthebetterthe
weather,themorepositiveexternalities.
Answers: positiveexternalitiesaredirectlyrelatedtotheweatherthebetterthe
weather,themorepositiveexternalities.
inthecaseoftrivialorzerotransactioncosts,negativeexternalitiesare
morelikelytoappear.
whentransactioncostsarehigh,positiveexternalitieswillbeminimized.
inthecaseoftrivialorzerotransactioncosts,thepropertyrights
assignmentdoesnotmattertotheresourceallocativeoutcome.
Question9
0outof1points
Thepriceelasticityofdemandforavariableinputwillbemoreelasticinallthefollowing
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ReviewTestSubmission:Quiz4EMIC2714BFNON
casesEXCEPT
Selected
Answer:
Answers:
thegreaterthepriceelasticityofdemandforthefinalproduct.
thegreaterthepriceelasticityofdemandforthefinalproduct.
theeasieritisforaparticularvariableinputtobesubstitutedforby
otherinputs.
thelargertheproportionoftotalcostsaccountedforbyaparticular
variableinput.
theshorterthetimeperiodbeingconsidered.
Question10
0outof1points
TheCoaseTheoremstatesthat________.
Selected
Answer:
Answers:
positiveexternalitiesleadtohighermarketprices
positiveexternalitiesleadtohighermarketprices
negativeexternalitiesleadtolowerequilibriumoutput
transactioncostsarehigherinfreemarkets
negotiationbetweeneconomicagentsleadstoanefficientallocationof
resources
Question11
1outof1points
Ifthesubstitutioneffectisalwaysgreaterthantheincomeeffect,thenanindividual's
laboursupplycurvewill
SelectedAnswer:
Answers:
alwayshaveapositiveslope
bendbackward
alwayshaveapositiveslope
alwayshaveanegativeslope
bevertical
behorizontal
Question12
0outof1points
RefertoExhibit19.Themonopolist'smaximumprofit
SelectedAnswer:
Answers:
isR1,000.
isR800.
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ReviewTestSubmission:Quiz4EMIC2714BFNON
isR1,000.
isR1,250.
cannotbedeterminedfromthediagram.
Question13
0outof1points
Ifthelaboursupplycurveisalmostvertical,thissuggeststhatthesubstitutioneffect
SelectedAnswer:
Answers:
isinthesamedirectionastheincomeeffect.
dominatestheincomeeffect.
isroughlyoffsetbytheincomeeffect.
isdominatedbytheincomeeffect.
isnegligible,leavingonlyanincomeeffect.
isinthesamedirectionastheincomeeffect.
Question14
0outof1points
Themarginalrevenueproductforaperfectlycompetitivefirmisequaltothe
SelectedAnswer:
Noneoftheabove.
Answers:
priceoftheproducttimesthemarginalproduct.
priceoftheproducttimesthemarginalrevenue.
marginalrevenueoftheproducttimesthemarginalfactorcost.
isderivedfromthelabourer'sdesiretowork.
Noneoftheabove.
Question15
0outof1points
Thegreatertheelasticityofdemandforafinalproduct,wefind________thedemand
forthefactorinputs.
SelectedAnswer:
thelowerwillbe
Answers:
thegreaterwillbe
thelowerwillbe
thatitwillnotimpact
Theanswercannotbedetermined.
Question16
0outof1points
TheCoasetheoremstatesthat
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ReviewTestSubmission:Quiz4EMIC2714BFNON
Selected
Answer:
bandc
Answers: transactioncostsconsistofmarginalprivatecostsandmarginalsocial
costsandarehigherwhenexchangeissubjecttoincreasingmarginalcosts.
transactioncostsarethedifferencebetweenmarginalsocialcostsand
marginalprivatecostsandarehigherwhenexchangeissubjectto
decreasingmarginalcosts.
whentransactioncostsaresignificant,theresourceallocativeoutcomewill
bethesameregardlessofwhoisassignedthepropertyrights.
whentransactioncostsareinsignificant,theresourceallocativeoutcome
willbethesameregardlessofwhoisassignedthepropertyrights.
bandc
Question17
0outof1points
Whichofthefollowingistrue?
Selected
Answer:
Answers:
candd
Thelowertheelasticityofdemandforcars,thehighertheelasticityof
demandfortheworkersthatproducecars.
Thehighertheelasticityofdemandforcars,thelowertheelasticityof
demandfortheworkersthatproducecars.
Thelowertheelasticityofdemandforcars,thelowertheelasticityof
demandfortheworkersthatproducecars.
Thefewerthesubstitutefactorsforunionlabour,thehighertheelasticityof
demandforunionlabour.
candd
Question18
0outof1points
Inafreemarketwhereafirm'sactivitycausesdetrimentalexternalities,
Selected
Answer:
Answers:
marginalbenefitswillbelessthanmarginalsocialcosts.
marginalbenefitswillbelessthanmarginalsocialcosts.
smalleroutputsthanthosethatmaximizeprofitswillbesocially
desirable.
marginalsocialcostwillbegreaterthanmarginalprivatecost.
Alloftheabovearecorrect.
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Question19
0outof1points
TheMarketBdescribedinExhibit28isa(n):
SelectedAnswer:
Answers:
monopolisticallycompetitivemarket.
perfectlycompetitivelabourmarket.
monopolistmarket.
oligopolisticmarket.
monoposonisticmarket.
monopolisticallycompetitivemarket.
Question20
0outof1points
Ifacompanydumpspollutioninthewaterandiftransactionscostsarehigh
SelectedAnswer:
Answers:
Allpartiesconnectedwiththepollutionshouldnegotiate
Allpartiesconnectedwiththepollutionshouldnegotiate
Thecompanyshouldbeliable
Thecompanyshouldbeallowedtopollute
Thecompanyshouldgooutofbusiness
Monday,May9,20169:17:26PMCAT
OK
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