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1 10 Question out of 10 points _____ is an online venue where businesses and individuals can hedge their uncertainty about whether legislation that affects them will be enacted. Answer Selected Answer: Correct Answer: Question 2 10 out of 10 points The assumption of rationality in economics implies that: Answer Selected Answer: people make choices with an eye toward attaining objectives they have chosen. Correct Answer: people make choices with an eye toward attaining objectives they have chosen. Question 3 10 out of 10 points Measuring important concepts in economics is difficult and some important economic phenomena are still beyond the understanding of economists. Thus economics is called a(n): Answer Selected Answer: Correct Answer: Question 4 0 out of 10 points The shares of the economic value of a particular transaction that accrues to the seller and the buyer depend on: Answer Selected Answer: Correct Answer: Question 5 10 out of 10 points Megan, an analyst in Ronalds team called in sick on a day when 4 projects were due for completion. Ronald divided Megans work between the remaining six team-members. Which form of governance is being used here? Answer Selected Answer: Correct Answer: Question 6 10 out of 10 points If the transaction between you and the seller takes place at a price that equals your valuation of the product, then: Answer Selected Answer: Correct Answer: Question 7 10 out of 10 points Starting from a pure exchange equilibrium, an increase in the demand for a commodity will result in: Answer Selected Answer: Correct Answer: Question 8 10 out of 10 points In a pure exchange market: Answer Selected Answer: Correct Answer: there is no production and people trade money for goods that already exist. there is no production and people trade money for goods that already exist. Question 9 10 out of 10 points If two commodities are complements then: Answer Selected Answer: Correct Answer: Question 10 0 out of 10 points The gap between average total cost and average variable cost: Answer Selected Answer: Correct Answer: Question 11 10 out of 10 points Let the marginal product of capital (MPK ) be 6; the marginal product of labor (MPL) be 2; the price of labor is given by $10. What will be the price of capital such that the isocost and the isoquant are tangent to each other? Answer Selected Answer: Correct Answer: Question 12 10 out of 10 points Which of the following cases exhibit increasing returns to scale? Answer Selected Answer: Correct Answer: Question 13 0 out of 10 points Assume that the world price of Good A is $8 per unit while its domestic price is $6, and the marginal cost incurred by domestic producers for producing one unit of Good A is $5. If the government imposes a tax of $3 per unit on domestic producers, which of the following situations will be observed? Answer Selected Answer: Correct 14 10 Answer: Question out of 10 points If the cost of production incurred by two producers in a competitive industry differs, the long-run supply curve: Answer Selected Answer: Correct Answer: Question 15 10 out of 10 points Which of the following commodities have a high short-run own-price elasticity of supply? Answer Selected Answer: Correct Answer: Question 16 0 out of 10 points Refer to Figure 64. What price will the monopolist charge when its marginal cost shifts from C to C? The following figure depicts the demand, marginal revenue (MR), and marginal cost (MC) for a monopolist. Figure 6-4 Answer Selected Answer: Correct Answer: Question 17 10 out of 10 points In the small country of Talisman, the liquor industry is monopolized by a single producer Best Drinks Inc. Best Drinks charges high end customers like 5star hotels a much higher price than it charges local pubs. Identify the correct statement from the following. Answer Selected Answer: Correct Answer: Best Drinks is aware of the variations in the valuation of its products by different consumer segments. Best Drinks is aware of the variations in the valuation of its products by different consumer segments. Question 18 10 out of 10 points Which of the following statements is true regarding the difference between a monopolist and a perfectly competitive firm? Answer Selected Answer: Correct Answer: Question 19 0 out of 10 points Which of the following games will have a solution in mixed strategies? Answer Selected Answer: Correct Answer: Question 20 0 out of 10 points Refer to Table 7-3. What will be the Nash equilibrium if there is no interaction between the two students? The following matrix represents the payoffs to two students who have been caught cheating in a class. Table 7-3 Answer Selected Answer: Correct Answer: Question 21 10 out of 10 points In games without dominant strategies the Nash equilibrium can be found by using: Answer Selected Answer: Correct Answer: Question 22 10 out of 10 points In a first-price auction: Answer Selected Answer: Correct Answer: Question 23 10 out of 10 points In a mixed strategy situation, like the heads or tails game, the players can maximize their income by randomly choosing head or tail each with a probability of: Answer Selected Answer: Correct Answer: Question 24 10 out of 10 points In the Stackelberg leadership model, Answer Selected Answer: Correct Answer: Question 25 10 out of 10 points The principle of backward induction proves that in price-fixing oligopoly games: Answer Selected Answer: Correct Answer: the players dishonor the agreement if the game is repeated a number of times, as determined prior to the start of play. the players dishonor the agreement if the game is repeated a number of times, as determined prior to the start of play. 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