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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ReviewTestSubmission:Quiz5:2016EMIC2714BFNON
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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ReviewTestSubmission:Quiz5:2016EMIC2714BFNON
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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