Review Test Submission_ Quiz 4 – EMIC271df BFN ON.pdf

5/9/2016

Revi ew Test Subm i ssi on: Qui z 4 – EM IC 2714 BFN ON

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Review Test Submission: Quiz 4

Review Test Submission: Quiz 4

User

Mpho Mothusi

Course

EMIC2714 BFN ON

Test

Quiz 4

Started

5/8/16 11:15 PM

Submitted

5/8/16 11:59 PM

Due Date

5/11/16 11:59 PM

Status

Needs Grading

Attem At tempt pt Score Score

5 out of 20 points

Time Elapsed

43 minutes

Results Displayed

All Answers, Submit Submitted ted Answers, Answers, Correct Correct Answers, Answers, Feedback, Feedback, Incorrec Incorrectly tly Answered Answered Questions

Question 1

0 out of 1 points

Because of the substitution effect, labour supply Selected Answer:

has no definable shape.

Answers: Answe rs:

tends to be upward-sloping. tends to be downward-sloping. tends to be vertical. has no definable shape. tends to be horizontal.

Question 2

0 out of 1 points

Refer to Exhibit 1. If the exhibit the exhibit represents represents a negative exter nality nality situation, the net social cost of expanding output from Q2 to Q1 is the area of Selected Answer: Answers: Answe rs:

BEA. ABC. BEA. Q2BAQ1. Q2EAQ1.

https://learn.ufs.ac.za/webapp https://learn.ufs.ac.z a/webapps/ass s/assessm essment/revi ent/review/r ew/review.j eview.jsp?attempt_id=_16191 sp?attempt_id=_1619105_1 05_1&course_i &course_id=_8775 d=_8775_1&conte _1&content_id=_36869 nt_id=_368697_1&o 7_1&outcome_id= utcome_id=_142 _142446 446… … 1/7

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Review Test Submission: Quiz 4 – EMIC2714 BFN ON

Question 3

1 out of 1 points

If natural monopolies are regulated to produce where there is resource-allocative efficiency, they produce where Selected Answer: Answers:

price equals marginal cost. price equals average total cost. marginal revenue equals marginal cost. price equals marginal cost. marginal revenue equals average total cost.

Question 4

1 out of 1 points

Refer to Exhibit 5. If a positive externality exists then the socially optimal output is Selected Answer: Answers:

Q2. Q1. Q2. Q1 - Q2. Q2 - Q1.

Question 5

1 out of 1 points

An increase in the wage rate has an income effect and a substitution effect, which operate in opposite directions. If the substitution effect dominates, the labour-supply curve Selected Answer:

is upward sloping.

Answers:

is upward sloping. is vertical. is downward sloping. is horizontal. has zero elasticity.

Question 6

0 out of 1 points

Which of the following statements would be represented by a backward-bending labour supply curve? Selected Answer:

Answers:

High-ranking executiv es are more likely to work past 5:00 p.m. than are middle managers. A R50,000-a-year professor works more hours than a R20,000-a-year professor.

https://learn.ufs.ac.z a/webapps/assessment/review/review.jsp?attempt_id=_1619105_1&course_id=_8775_1&content_id=_368697_1&outcome_id=_142446… 2/7

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The CEO of a major computer manufacturer works more hours than the union workers.

The owners of a successful business work fewer days than do their employees. Hospital janitors work fewer hours than does the chief of obstetrics. High-ranking executives are more likely to work past 5:00 p.m. than are middle managers.

Question 7

1 out of 1 points

The backward-bending supply curve of labour is derived from the concept that Selected Answer:

workers will initially increase the number of hours worked as the wage rate rises but would reduce the number of hours worked at very high wage rates.

Answers: workers' backs get tired as the number of hours worked increases, s o they reduce their supply of labour.

workers will initially increase the number of hours worked as the wage rate rises but would reduce the number of hours worked at very high wage rates. workers will always substitute leisure for additional time on the job no matter what the wage rate is. workers are lazy and will only increase the number of hours worked if the wage rate increases. None of the above.

Question 8

0 out of 1 points

The Coase theorem states that Selected Answer:

positiv e externalities are directly related to the weather-the better the weather, the more positive externalities.

Answers: positiv e externalities are directly related to the weather-the better the weather, the more positive externalities.

in the case of trivial or zero transaction costs, negative externalities are more likely to appear. when transaction costs are high, positive externalities will be minimized.

in the case of trivial or zero transaction costs, the property rights assignment does not matter to the resource-allocative outcome.

Question 9

0 out of 1 points

The price elasticity of demand for a variable input will be more elastic in all the following https://learn.ufs.ac.z a/webapps/assessment/review/review.jsp?attempt_id=_1619105_1&course_id=_8775_1&content_id=_368697_1&outcome_id=_142446… 3/7

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cases EXCEPT Selected Answer: Answers:

the greater the price elasticity of demand for the final product. the greater the price elastic ity of demand for the final product. the easier it is for a particular variable input to be substituted for by other inputs. the larger the proportion of total costs accounted for by a particular variable input. the shorter the time period being considered.

Question 10

0 out of 1 points

The Coase Theorem states that ________. Selected Answer: Answers:

positive externalities lead to higher market prices positiv e externalities lead to higher market prices negative externalities lead to lower equilibrium output transaction costs are higher in free markets

negotiation between economic agents leads to an efficient allocation of resources

Question 11

1 out of 1 points

If the substitution effect is always greater than the income effect, then an individual's labour supply curve will Selected Answer: Answers:

always have a positive slope bend backward always have a positive slope always have a negative slope be vertical be horizontal

Question 12

0 out of 1 points

Refer to Exhibit 19. The monopolist's maximum profit Selected Answer: Answers:

is R1,000. is R800.


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is R1,000. is R1,250. cannot be determined from the diagram.

Question 13

0 out of 1 points

If the labour-supply curve is almost vertical, this suggests that the substitution effect Selected Answer: Answers:

is in the same direction as the income effect. dominates the income effect. is roughly offset by the income effect. is dominated by the income effect. is negligible, leaving only an income effect. is in the same direction as the income effect.

Question 14

0 out of 1 points

The marginal revenue product for a perfectly competitive firm is equal to the Selected Answer:

None of the above.

Answers:

price of the product times the marginal product. price of the product times the marginal revenue. marginal revenue of the product times the marginal factor cost. is derived from the labourer's desire to work. None of the above.

Question 15

0 out of 1 points

The greater the elasticity of demand for a final product, we find ________ the demand for the factor inputs. Selected Answer:

the lower will be

Answers:

the greater will be the lower will be that it will not impact The answer cannot be determined.

Question 16

0 out of 1 points

The Coase theorem states that https://learn.ufs.ac.z a/webapps/assessment/review/review.jsp?attempt_id=_1619105_1&course_id=_8775_1&content_id=_368697_1&outcome_id=_142446… 5/7

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Selected Answer:

b and c

Answers: transaction costs consis t of marginal private costs and marginal social costs and are higher when exchange is subject to increasing marginal costs.

transaction costs are the difference between marginal social costs and marginal private costs and are higher when exchange is subject to decreasing marginal costs. when transaction costs are significant, the resource-allocative outcome will be the same regardless of who is assigned the property rights.

when transaction costs are insignificant, the resource-allocative outcome will be the same regardless of who is assigned the property rights. b and c

Question 17

0 out of 1 points

Which of the following is true? Selected Answer: Answers:

c and d The lower the elasticity of demand for cars, the higher the elasticity of demand for the workers that produce cars. The higher the elasticity of demand for cars, the lower the elasticity of demand for the workers that produce cars.

The lower the elasticity of demand for cars, the lower the elasticity of demand for the workers that produce cars. The fewer the substitute factors for union labour, the higher the elasticity of demand for union labour. c and d

Question 18

0 out of 1 points

In a free market where a firm's activity causes detrimental externalities, Selected Answer: Answers:

marginal benefits will be less than marginal social costs. marginal benefits will be less than marginal social costs. smaller outputs than those that maximize profits will be socially desirable. marginal social cost will be greater than marginal private cost. All of the above are c orrect.


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Question 19

0 out of 1 points

The Market B described in Exhibit 28 is a(n): Selected Answer: Answers:

monopolistically competitive market. perfectly competitive labour market. monopolist market. oligopolistic market. monoposonistic market. monopolistically competitive market.

Question 20

0 out of 1 points

If a company dumps pollution in the water and if transactions costs are high Selected Answer: Answers:

All parties connected with the pollution should negotiate All parties connected with the pollution should negotiate The company should be liable The company should be allowed to pollute The company should go out of business

Monday, May 9, 2016 9:17:26 PM CAT

← OK


Review Test Submission_ Quiz 4 – EMIC271df BFN ON.pdf

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