5/9/2016

ReviewTestSubmission:Quiz4EMIC2714BFNON

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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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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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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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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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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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