5/8/2016

ReviewTestSubmission:Quiz5:2016EMIC2714BFNON

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Onlinetests ReviewTestSubmission:Quiz5:2016

ReviewTestSubmission:Quiz5:2016
User

SamkeloLUSASENI

Course

EMIC2714BFNON

Test

Quiz5:2016

Started

5/7/163:49AM

Submitted

5/7/164:01AM

DueDate

5/8/1611:59PM

Status

Completed

AttemptScore

5outof20points

TimeElapsed

12minutes

Results
Displayed

AllAnswers,SubmittedAnswers,CorrectAnswers,Feedback,IncorrectlyAnswered
Questions

Question1

0outof1points

Whichofthefollowingistrueofanaturalmonopoly?
Selected
Answer: Ifregulated,thefirmwillhavealowerlevelofoutputthananunregulated
firm,whethertheregulationisbasedonaveragecost,marginalcost,or
normalprofit.
Answers: Ifregulated,thefirmwillhaveahigherlevelofoutputthananunregulated
firm,whethertheregulationisbasedonaveragecost,marginalcost,or
normalprofit.

Ifregulated,thefirmwillhavealowerlevelofoutputthananunregulated
firm,whethertheregulationisbasedonaveragecost,marginalcost,or
normalprofit.
Ifregulated,thefirmthatisonlyallowedanormalprofitwillbeallowedto
chargeapriceinexcessofitsaveragecost.
Ifregulated,thefirmthatisonlyallowedanormalprofitwillbeallowedto
producemorethanafirmthatmustsetapriceequaltoitsmarginalcost.
Ifregulated,thefirmthatisonlyallowedanormalprofitwillbeallowedto
producemorethanafirmthatmustsetapriceequaltoitsaveragecost.

Question2

0outof1points

Supposelabourandcapitalarebothusedtoproduceoutput.Inthelongrun,ifthewage
rateriseswhiletherentalrateoncapitalremainsunchanged,
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ReviewTestSubmission:Quiz5:2016EMIC2714BFNON

Selected
Answer:
Answers:

Theprocesswillbecomemorelabourintensive

Theprocesswillbecomemorelabourintensive
Theprocesswillbecomemorecapitalintensive

Marketforceswillcomeintoplaytobringthepricesbacktotheirearlier
relationship
Themarginalproductofcapitalwillriseandthemarginalproductof
labourwillfall

Question3

1outof1points

RefertoExhibit1.9.Theequilibriumpriceinthemarketbeforethetaxisimposedis
SelectedAnswer:
Answers:

$6.

$8.
$6.

$5.
$3.

Question4

0outof1points

Thesubstitutioneffectofadecreaseinthewageratecausesthequantityoflabour
suppliedto
SelectedAnswer:

increaseonlyiftheindividualdesiresmoreleisuretime

Answers:

increase

increaseonlyiftheindividualdesiresmoreleisuretime
increaseonlyifthesubstitutioneffectoutweighstheincomeeffect
decrease
decreaseonlyiftheindividuallowersthevalueofleisuretime

Question5

0outof1points

Themostsignificantdifferencebetweenperfectcompetitionandmonopolistic
competitionisthat
Selected
Answer: inaperfectlycompetitivemarketthereisalargenumberofsellers,whilein
amonopolisticallycompetitivemarketthereisasmallnumberofsellers.
Answers:

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inaperfectlycompetitivemarketproductsaredifferentiated,whileina
monopolisticallycompetitivemarketproductsarehomogeneous.
inaperfectlycompetitivemarketproductsarehomogeneous,whileina
monopolisticallycompetitivemarketproductsaredifferentiated.
inaperfectlycompetitivemarketthereisalargenumberofsellers,whilein
amonopolisticallycompetitivemarketthereisasmallnumberofsellers.
inaperfectlycompetitivemarketthereisasmallnumberofsellers,whilein
amonopolisticallycompetitivemarketthereisalargenumberofsellers.

Question6

0outof1points

Underrateofreturnregulation
SelectedAnswer:
Answers:

Firmsearnzeroeconomicprofits

Firmsearnpositiveeconomicprofits
Firmsearnnegativeeconomicprofits

Firmsearnzeroeconomicprofits
Firmsearnzeroaccountingprofits

Question7

0outof1points

RefertoExhibit1.9.Thepricethatbuyerspayafterthetaxisimposedis
SelectedAnswer:

$5.

Answers:

$8.

$6.
$5.
$3.

Question8

0outof1points

Anincreaseinthedemandforautomobileswillincreasethedemandforlabourusedto
producetheautomobilesduetoa(n)
SelectedAnswer:
Answers:

decreaseinthemarginalrevenueproductofautomobiles

increaseinthemarginalrevenueproductoflabour
decreaseinthemarginalrevenueproductoflabour
increaseinthemarginalrevenueproductofautomobiles

decreaseinthemarginalrevenueproductofautomobiles
decreaseinthepriceofautomobiles
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Question9

0outof1points

Asafirmbuysmorecapitalandlesslabour,themarginalphysicalproductofcapital
__________andthemarginalphysicalproductoflabour__________,assumingthelaw
ofdiminishingmarginalreturnshassetinforeachfactor.
SelectedAnswer:
Answers:

decreasesincreases

decreasesincreases
increasesincreases
decreasesdecreases

increasesremainsconstant
remainsconstantdecreases

Question10

1outof1points

IfHannahconsidersbiscuitsaninferiorgood,thenwhentheirpricefalls,she
Selected
Answer:
Answers:

maybuymorebiscuits

willdefinitelybuymorebiscuits
willdefinitelybuyfewerbiscuits
maybuymorebiscuits

willbuyfewerbiscuitsifthesubstitutioneffectislargerthanthe
incomeeffect
willbuymorebiscuitsifthesubstitutioneffectissmallerthanthe
incomeeffect

Question11

0outof1points

Iffirmsinacompetitivemarketarenotidentical,thenthelongrunmarketsupplycurve
willbe
SelectedAnswer:
Answers:

undetermined.

horizontal.
upwardsloping.
downwardsloping.

undetermined.

Question12

1outof1points

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Whichofthefollowingwouldcauseaconsumertopurchaselessofagoodwhenthe
priceofthegoodrises?
SelectedAnswer:
Answers:

Bothaandb

Theincomeeffect
Thesubstitutioneffect
Bothaandb

Neitheranorb

Question13

0outof1points

RefertoExhibit4.9,whatisthewageratefortheperfectlycompetitivemarket?
SelectedAnswer:
Answers:

W4

W1
W2

W3
W4

Question14

0outof1points

Aproductionfunctionforwhichproportionalchangesinallinputsleadstoamorethan
proportionalchangeinoutputissaidtoexhibit
SelectedAnswer:

Increasingreturnstoscale

Answers:

Diminishingmarginalproduct(returns)

Decreasingreturnstoscale
Constantreturnstoscale
Increasingreturnstoscale

Question15

0outof1points

Themaindifferencebetweenamonopsonistandacompetitivebuyeroflabouristhat
Selected
Answer: thecompetitorisalsoacompetitorinproductmarketswhilethe
monopsonistisalsoamonopolyinproductmarkets.
Answers: thecompetitorcanhireasmanyworkersasitwantsatthegoingwagewhile
amonopsonistcanforcewagesdownwhenhiringadditionalworkers.

thecompetitorcanhireasmanyworkersasitwantsatthegoingwagewhile
amonopsonistmustraisewagestohireadditionalworkers.
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thecompetitorisasmallfirmwhilethemonopsonistisalargefirm.

thecompetitorisalsoacompetitorinproductmarketswhilethe
monopsonistisalsoamonopolyinproductmarkets.

Question16

0outof1points

RefertoExhibit1.5.ThemarketforgoodXisinitiallyinequilibriumat$5.The
governmentthenplacesaperunittaxongoodX,asshownbytheshiftofS1toS2.
Approximatelywhatpercentageofthetaxdoconsumersenduppaying?
SelectedAnswer:
Answers:

25percent

63percent
45percent
70percent
55percent

25percent

Question17

0outof1points

Aneconomististoldthatconcentrationinthecementindustryhasincreased.Hecan
safelyconcludethat
SelectedAnswer:
Answers:

Alloftheabovearecorrect.

cementproductionmusthavefallenintheindustry.
competitioninthecementindustryhasdecreased.

therearefewercementproducersthanbefore.
Alloftheabovearecorrect.

Question18

0outof1points

RefertoExhibit4.20.Tomaximizeitsprofit,amonopolistwouldchoosewhichofthe
followingoutcomes?
SelectedAnswer:
Answers:

Q=30andP=60

Q=30andP=30
Q=30andP=60
Q=45andP=45

Q=60andP=30

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Question19

1outof1points

Bundlesthatlieabovetheindifferencecurvearepreferredtobundlesthatliebelow.This
isanexampleof
SelectedAnswer:
Answers:

Moreisbetter

Transitivity
Completeness
Moreisbetter

Convexivity

Question20

1outof1points

RefertoExhibit1.6.LetS1bethesupplycurveofaproducer.IfS2isthesupplycurve
ofthesameproducerafterthegovernmentimposesaperunittax,thetaxrevenue
generatedwillbe
Selected
Answer:

greaterifD1isthedemandcurvefacingthefirm.

Answers:

greaterifD1isthedemandcurvefacingthefirm.

greaterifD2isthedemandcurvefacingthefirm.
thesameregardlessofwhichdemandcurvethefirmfaces.
Anyoftheabove,dependingonthetypeofgoodthetaxisimposed
on.
Sunday,May8,20167:21:55AMCAT

OK

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