5/8/2016

ReviewTestSubmission:Quiz5:2016EMIC2714BFNON

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ReviewTestSubmission:Quiz5:2016
User

MphoMothusi

Course

EMIC2714BFNON

Test

Quiz5:2016

Started

5/8/164:37AM

Submitted

5/8/166:34AM

DueDate

5/8/1611:59PM

Status

Completed

AttemptScore

4outof20points

TimeElapsed

1hour,57minutes

Results
Displayed

AllAnswers,SubmittedAnswers,CorrectAnswers,Feedback,IncorrectlyAnswered
Questions

Question1

0outof1points

Aneconomististoldthatconcentrationinthecementindustryhasincreased.Hecan
safelyconcludethat
SelectedAnswer:
Answers:

Alloftheabovearecorrect.

cementproductionmusthavefallenintheindustry.
competitioninthecementindustryhasdecreased.

therearefewercementproducersthanbefore.
Alloftheabovearecorrect.

Question2

1outof1points

Ifincomeincreases,thenthe
SelectedAnswer:
Answers:

Budgetlineshiftstotheright

Budgetlinerotatescounterclockwise
Budgetlinerotatesclockwise
Budgetlineshiftstotheright

Opportunitysetcontracts
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Question3

0outof1points

RefertoExhibit4.4.Oneofthethingsthelabourunionprobablycandotoconvince
managementthatthesupplycurveisS'SinsteadofSSis
SelectedAnswer:
Answers:

makeacrediblethreatofastrike.

makeacrediblethreatofastrike.
askworkerstotakeacutinfringebenefits.
trytomaximizethewagebilltotheunion.

trytomaximizemembershipintheunion.

Question4

0outof1points

Ifamonopolistmustlowerthepriceonallunitsinordertosellanadditionalunit,
SelectedAnswer:
Answers:

pricewillalwaysbegreaterthanmarginalrevenue

itisimpossibleforthemonopolisttomaximizeprofit
themonopolistwillalwaysloseprofitwhenitincreasesquantity

themonopolistwillalwaysloserevenuewhenitincreasesquantity
pricewillalwaysbegreaterthanmarginalrevenue
pricewillalwaysbelessthanmarginalrevenue

Question5

0outof1points

AccordingtoExhibit3.9,whatwillbethepricechargedbyaperfectlycompetitivefirm?
SelectedAnswer:
Answers:

P2

P4
P3
P2
P1

Question6

1outof1points

ConsidertwogoodsXandYavailableforconsumption.AssumethatthepriceofX
changeswhilethepriceofYremainsfixed.Forthesetwogoods,thepriceconsumption
curveillustratesthe
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SelectedAnswer:
Answers:

utilitymaximizingcombinationsofXandYforeachpriceofX.

relationshipbetweenthepriceofXandconsumptionofY.
utilitymaximizingcombinationsofXandYforeachpriceofX.

relationshipbetweenthepriceofYandtheconsumptionofX.
utilitymaximizingcombinationsofXandYforeachquantityofX.

Question7

0outof1points

TotalindustrysalesareR80million.Thetopfourfirms,AD,accountforsalesofR7
million,R3.2million,R0.8millionandR0.4million,respectively.Whatisthefourfirm
concentrationratio?
SelectedAnswer:

0.14

Answers:

0.85

0.14
0.01
0.93

Question8

0outof1points

Refertoexhibit4.7,themonopsonistwillemploy
SelectedAnswer:
Answers:

L1atawageofW1.

L2atawageofW2.
L2atawageofW3.
L1atawageofW1.
L1atawageofW3.

Question9

1outof1points

Thetaskofeconomicregulationisto
SelectedAnswer:
Answers:

approximatetheresultsofthecompetitivemarket.

protectmonopolyprofits.
approximatetheresultsofthecompetitivemarket.

replacecompetitionwithgovernmentownership.
increasecompetitionwithinthemarket.

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Question10

0outof1points

Whichofthefollowingstatementsisnotcorrect?
Selected
Answer: Thegovernmentshouldalwaysintervenetoimprovemonopolyinefficiency.
Answers: Thegovernmentmayuseantitrustlawstopreventamergerifthe
governmentbelievesthemergerwillreducecompetitionandincreaseprices.

Byregulatinganaturalmonopolywherepriceequalsaveragetotalcost,the
monopolyearnszeroprofits.
Anadvantageofprivateownershipoverpublicownershipisthatprivate
businessownerstendtofireinefficientmanagers.
Thegovernmentshouldalwaysintervenetoimprovemonopolyinefficiency.

Question11

0outof1points

Ifmywagerateincreases,utilitymaximizationrequiresthatmyquantityoflabour
supplied
SelectedAnswer:

increaseifthesubstitutioneffectdominatestheincomeeffect

Answers:

increase

decrease
increaseiftheincomeeffectdominatesthesubstitutioneffect
increaseifthesubstitutioneffectdominatestheincomeeffect
increaseifthesubstitutioneffectequalstheincomeeffect

Question12

0outof1points

Foratypicalpersonwhoiscurrentlyearningalowwagerate,the
Selected
Answer:
Answers:

substitutioneffectofawagerateincreaseusuallyisstrongerthanthe
incomeeffect
substitutioneffectofawagerateincreaseusuallyisstrongerthanthe
incomeeffect
substitutioneffectofawagerateincreaseusuallyisweakerthanthe
incomeeffect
incomeeffectofawagerateincreaseisusuallyzero
substitutioneffectofawagerateincreaseisusuallyzero

substitutionandincomeeffectsofawagerateincreasetendtoworkin
thesamedirection

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Question13

0outof1points

GovernmentwantstomaximizeitstaxrevenueanditcanonlyplaceaR2perunittax
ononeoftwogoods.Itshouldplacethetax(ontheproduction)ofthegoodwhose
demandcurvehasthe
SelectedAnswer:
Answers:

higherpriceelasticityofdemand.

higherpriceelasticityofdemand.
lowerpriceelasticityofdemand.

greaterlength.
shorterlength.
aorc

Question14

0outof1points

Themarketshares(inpercentageterms)forthe12firmsthatcompriseanindustryare
15,12,11,10,8,7,7,6,6,6,6,and6.TheHerfindahlindexis__________andthe
fourfirmconcentrationratiois__________.
SelectedAnswer:
Answers:

93248percent

93248percent
1,03227percent

1,00048percent
95024percent
noneoftheabove

Question15

1outof1points

Thepropertythatimpliesthatindifferencecurvesareconvextotheoriginis:
SelectedAnswer:
Answers:

Diminishingmarginalrateofsubstitution

Moreisbetter
Completeness
Transitivity
Diminishingmarginalrateofsubstitution

Question16

0outof1points

Whichofthefollowingisfalse?
Selected
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Answer:

Oneofthecostsofa(singleprice)monopolististhatitdoesnotproduce
thequantityofoutputatwhichP=MC.

Answers: Oneofthecostsofa(singleprice)monopolististhatitdoesnotproduce
thequantityofoutputatwhichP=MC.

Thirddegreepricediscriminationissometimesreferredtoasdiscrimination
amongbuyers.
Aperfectlypricediscriminatingmonopolistisresourceallocativeefficient.
Pricediscriminationoccurswhenthesellerchargesdifferentpricesforthe
productitsells,andthepricedifferencesdonotreflectcostdifferences.
noneoftheabove

Question17

0outof1points

RefertoExhibit4.18.Whatisthesociallyefficientpriceandquantity?
SelectedAnswer:
Answers:

price=Gquantity=B

price=Fquantity=A
price=Gquantity=B
price=Gquantity=A

price=Dquantity=A

Question18

0outof1points

Amonopolistdoesnothaveatypicalsupplycurvebecause
Selected
Answer:

ofalltheabove.

Answers:

numerousdemandcurvescouldhaveidenticalmarginalrevenueatagiven
pointonamonopolist'smarginalcostcurve.
amonopolistisnotapricetaker.
thereisnouniquecorrespondencebetweenpriceandrevenuewhenthe
marketdemandcurveshifts.
ofalltheabove.

Question19

0outof1points

Amonopolistproduces
Selected
Answer: lessthanthesociallyefficientquantityofoutputbutatahigherpricethanin
acompetitivemarket.
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Answers: morethanthesociallyefficientquantityofoutputbutatahigherpricethan
inacompetitivemarket.

lessthanthesociallyefficientquantityofoutputbutatahigherpricethanin
acompetitivemarket.
thesociallyefficientquantityofoutputbutatahigherpricethanina
competitivemarket.
possiblymoreorpossiblylessthanthesociallyefficientquantityofoutput,
butdefinitelyatahigherpricethaninacompetitivemarket.

Question20

0outof1points

Amonopsonistwantstopurchasemorelabour.Whichofthefollowingstatementsis
true?
Selected
Answer: Thewageratethatthemonopsonisthastopayfutureworkersislowerthan
itpayscurrentworkerssincethereisnootherplacetowork.
Answers: Thewageratethatthemonopsonisthastopayfutureworkersislowerthan
itpayscurrentworkerssincethereisnootherplacetowork.

Thewageratethatthemonopsonisthastopayfutureworkerswillbethe
samerateitpayscurrentworkers.
Thewageratethatthemonopsonisthastopayfutureworkersishigherthan
whatitwillcontinuetopaycurrentworkers.
Themonopsonistwillhavetoraisethewagerateforcurrentandadditional
employees.
Sunday,May8,20167:05:49PMCAT

OK

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