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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