5/8/2016

ReviewTestSubmission:Quiz4EMIC2714BFNON

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Onlinetests ReviewTestSubmission:Quiz4

ReviewTestSubmission:Quiz4
User

MphoMothusi

Course

EMIC2714BFNON

Test

Quiz4

Started

5/1/168:29PM

Submitted

5/8/1611:13PM

DueDate

5/8/1611:59PM

Status

Completed

AttemptScore

17outof20points

TimeElapsed

170hours,44minutes

Results
Displayed

AllAnswers,SubmittedAnswers,CorrectAnswers,Feedback,IncorrectlyAnswered
Questions

Question1

1outof1points

Foramonopsonist,themarginalfactorcostcurvewillbeabovethesupplyoflabour
curve.Themarginalfactorcostcurveisabovethesupplycurvebecause
Selected
Answer:
Answers:

themonopsonistwillhavetopayallworkersahigherwageratethanthe
currentwagerateifitwantstohiremoreworkers.
themonopsonistwilltakeadvantageoflabourandofferthemlowerwages.
inorderforthemonopsonisttosellanadditionalunitofthegood,theprice
ofthegoodmustbelowered.
inorderforthemonopsonisttohiremorelabourthemonopsonistmustalso
purchasemorecapital.
themonopsonistwillhavetopayallworkersahigherwageratethanthe
currentwagerateifitwantstohiremoreworkers.

Question2

1outof1points

Theoptimallevelofemploymentforamonopsonistissetatthepointwherethe
SelectedAnswer:
Answers:

marginalfactorcostequaltotheMRPL.

wagerateequalstheVMPL.
wagerateequalsthemarginalfactorcost.
marginalfactorcostequaltotheMRPL.

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supplyoflabourequalsthemarginalfactorcost.

Question3

1outof1points

Inamonopsonisticmarket,
Selected
Answer:
Answers:

bothemploymentandwagesarelowerthaninacomparable
competitivemarket.
employmentislowerbutwagesarehigherthaninacomparable
competitivemarket.
employmentishigherbutwagesarelowerthaninacomparable
competitivemarket.
bothemploymentandwagesarehigherthaninacomparable
competitivemarket.
bothemploymentandwagesarelowerthaninacomparable
competitivemarket.

Question4

1outof1points

Privateownershipofamonopolymaybenefitsocietybecausethemonopolywillhave
anincentiveto
Selected
Answer:
Answers:

loweritscoststoearnahigherprofit.

chargeapricethatisconsistentwiththatofabenevolentsocial
planner.
chargeapricethatpreventssomepeoplefrombuying.
priceitsgoodaccordingtotheintersectionofmarginalcostand
averagerevenue.
loweritscoststoearnahigherprofit.

Question5

1outof1points

Ifthesubstitutioneffectisalwaysgreaterthantheincomeeffect,thenanindividual's
laboursupplycurvewill
SelectedAnswer:
Answers:

alwayshaveapositiveslope

bendbackward
alwayshaveapositiveslope

alwayshaveanegativeslope
bevertical
behorizontal

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Question6

1outof1points

Ataxmaybeusedasacorrectivedeviceinthecaseofanegativeexternalitybecause
itwill__________marginalprivatecostsand__________supply.
SelectedAnswer:

increasedecrease

Answers:

increasedecrease

increaseincrease
decreasedecrease
decreaseincrease

Question7

1outof1points

Allofthefollowingstatementsregardingthemarginalrevenueproduct(MRP)curveand
thedemandforlabouraretrueEXCEPT
Selected
Answer:
Answers:

anincreaseinthemarketdemandforagivenproductdecreasesthe
product'sprice.
anindividualfirm'sdemandforlabourisitsMRPcurve.
underconditionsofperfectcompetition,MRPequalsmarginalphysical
productmultipliedbytheproduct'sprice.
anincreaseinthemarketdemandforagivenproductdecreasesthe
product'sprice.
thedemandforlabourisaderiveddemand.

Question8

1outof1points

Anincreaseinthewageratehasanincomeeffect,whichresultsin____consumption
ofleisure,andasubstitutioneffect,whichresultsin____consumptionofleisure.
SelectedAnswer:
Answers:

increasedreduced

reducedreduced
reducedincreased
unchangedreduced
increasedreduced

increasedincreased

Question9

0outof1points

Ifthelaboursupplycurveisalmostvertical,thissuggeststhatthesubstitutioneffect
SelectedAnswer:

isinthesamedirectionastheincomeeffect.

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Answers:

dominatestheincomeeffect.
isroughlyoffsetbytheincomeeffect.

isdominatedbytheincomeeffect.
isnegligible,leavingonlyanincomeeffect.
isinthesamedirectionastheincomeeffect.

Question10

1outof1points

RefertoExhibit11.Intheabsenceofcollectivebargaining,whatquantityoflabour
wouldtheprofitmaximizingmonoposonisthire?
SelectedAnswer:
Answers:

Q3

Q1
Q2
Q3

Q4
Q5

Question11

0outof1points

Whenthepriceofthefirm'sproductincreases,thedemandcurveforlabourforaprofit
maximizingfirmoperatinginacompetitivemarketwill
SelectedAnswer:
Answers:

becomesteeper.

shifttotheleft.
shifttotheright.

becomeflatter.
becomesteeper.
beunaffected.

Question12

1outof1points

RefertoExhibit3.Ifanegativeexternalityexists,thentheexternalcostsassociated
withthenegativeexternalityequal
SelectedAnswer:

P3P1.

Answers:

P3P1.

P4P3.
P3P2.
P2P1.
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Question13

1outof1points

Undermonopsony,thewagerate
SelectedAnswer:
Answers:

islessthanthemarginalrevenueproductoflabour.

equalsthemarginalproductoflabour.
equalsthemarginalrevenueproductoflabour.
islessthanthemarginalrevenueproductoflabour.

isgreaterthanitwouldbeunderperfectcompetition.

Question14

1outof1points

MPLmultipliedbyPXisthe________whilethewagerateisthe________,whereL
denoteslabourandXdenotesoutput.
Selected
Answer:

valueoflabour'smarginalproductcostofamarginalunitoflabour

Answers:

costofamarginalunitoflabourvalueoflabour'smarginalproduct
valueoflabour'smarginalproductcostofamarginalunitoflabour
marginalrevenueofaunitofoutputmarginalcostofaunitofoutput
marginalcostofaunitofoutputmarginalrevenueofaunitofoutput

Question15

1outof1points

Thesubstitutioneffectofanincreaseinthewagerateonthequantityofleisure
demanded
Selected
Answer:

Makesleisuremoreexpensivewhichleadspeopletoworkmore

Answers:

Makesleisuremoreexpensivewhichleadspeopletoworkmore

Makesleisurelessexpensivewhichcausespeopletoworkless
Givespeoplemorepurchasingpowerandcausespeopletodemand
moreleisure
Givespeoplelesspurchasingpowerandsotheywilldemandless
leisure

Question16

0outof1points

Ifaproductionprocesscreatespositiveexternalities,acompetitivemarketproducestoo
fewpositiveexternalitiesbecausetheproducer
SelectedAnswer:
Answers:

doesnotpayallthecostsoftheexternalities.

doesnotpayallthecostsoftheexternalities.

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doesnotreceivecompensationfortheexternalities.

BothAandB.
Noneoftheabove.

Question17

1outof1points

Amonopsonisticfirm,ascomparedtoaperfectlycompetitivefirm,pays__________
wageandhires__________labour.
SelectedAnswer:
Answers:

alowerless

ahigherless
ahighermore
alowerless

alowermore
thesamethesameamountof

Question18

1outof1points

Themonopsonistwillemploylabourtothepointatwhichthe
Selected
Answer:

marginalfactorcostequalsthemarginalrevenueproductoflabour.

Answers:

marginalfactorcostequalsthemarginalrevenueproductoflabour.
marginalrevenueproductequalsthewagerate.
marginalcostofoutputequalsthemarginalrevenue.
demandequalsthesupplyoflabour.

Question19

1outof1points

APigouviansubsidyleadstoasociallyefficientoutcomeby________.
SelectedAnswer:

raisingindividuals'marginalbenefitfromconsumption

Answers:

raisingindividuals'marginalbenefitfromconsumption

loweringthemarginalprivatecostofproduction
raisingthemarginalexternalbenefitfromconsumption
loweringthemarginalexternalcostofproduction

Question20

1outof1points

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Thebestnumberofworkersforanyemployertohireisthatquantityinwhich:
SelectedAnswer:

themarginalrevenueproductequalsthemarginalfactorcost.

Answers:

themarginalrevenueproductequalsthemarginalfactorcost.

themarginalrevenueproductexceedsthemarginalfactorcost.
totalcostsareminimized.
totalrevenueismaximized.
noneofthese

Sunday,May8,201611:14:00PMCAT

OK

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