Customer‘s safety is the future trend of the foodservice and hospitality industry

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Quiz Submissions - Quiz 2 Revisions Amber Zhang (username: amber666)

Attempt 1

Written: Mar 29, 2021 8:47 AM - Mar 29, 2021 9:30 AM

Submission View

Released: Mar 30, 2021 12:01 AM

Question 1 4 / 4 points

To write this quiz, you must agree to abide by UVic academic regulations and observe standards of ‘scholarly integrity,’ (no plagiarism or cheating). Therefore, all online quizzes must be taken individually and not with a friend, classmate, or group. You can use course material posted by Dr. Scoones on the Brightspace page, but you cannot use the discussion boards nor any other tools of collaboration. You cannot access your notes, the internet, nor other resources while completing this exam. Do not quote posted course material without attribution. It is always best to use your own words instead of quotes. You are also prohibited from sharing any information about the quiz with others.

By selecting "yes" you agree to the following statement:

I affirm that I will not give or receive any aid on this quiz or access any unauthorized resources and that all work will be my own.

If you do not agree, you will be not be able to take the quiz.

Yes

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Question 2 8 / 8 points

The result that any Pareto efficient allocation can be achieved by competitive equilibrium with the appropriate redistribution of initial endowments is called

Question 3 0 / 8 points

Assume there are two consumers (A and B) in an economy that have preferences that can be represented as cobb-douglas utility functions. Also assume that there are two firms that have concave production possibility frontiers over goods x and y.

Which of the following conditions must be true for an allocation to be a competitive equilibrium? Select all that apply.

No

The Second Fundamental Theorem of Welfare Economics

Walras's Law

Edgeworth's condition

The First Fundamental Theorem of Welfare Economics

All producers must have marginal rates of transformation that are equal.

Consumers must value goods at the margin at the same rate it costs society to produce them.

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Question 4 8 / 8 points

Consider a two consumer, two good economy where the following condition holds:

Which of the following statements is true?

Question 5 0 / 8 points

Producers must be operating on their production possibilities frontier.

All consumers must have marginal rates of substitution that are equal.

All goods in the economy are consumed.

M R < M R = M RTS A S B

The marginal benefit of x is equal to the marginal cost, so it would be a potential Pareto improvement to produce more y.

The economy is distributively efficient

The economy is allocatively efficient

All of the above

None of the above

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Consider the price and income combination in the one person economy depicted below:

Which of the following statements are true (choose all that apply)

In this allocation, the price of labour must fall to achieve allocative efficiency

The choice of 4 units of labour is allocatively efficient

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Question 6 9 / 9 points

Consider the following figure. The blue dot labelled X, Y represents how much X and Y is currently being produced in the economy.

Which of the following statements are true?

The consumer is choosing leisure in anticipation of less income from profit than they will get in competitive equilbrium

The consumer is maximising utility in the consumption sector

This economy is productively and distributively efficient, but not allocatively efficient.

This economy is distributively efficient only.

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Question 7 8 / 8 points

Consider a two consumer, two good economy Assume that both goods are produced, and that production

and consumption are such that MRSA > MRSB < MRTi = MRTj. Given this, which of the following statements is TRUE?

I. The economy satisfies distributive efficiency. II. The economy satisfies productive efficiency.

III. Allocative efficiency requires the resources to shift from the production of X to the production Y.

Question 8 7 / 7 points

Fan is an expected utility maximizer and thier utility function over money is given by

This economy is productively, distributively, and allocatively efficient.

This economic is productively efficient only.

None of the statements are true.

I, II, and III.

I and II only.

I only.

II only.

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Fan has a car that might break down. If it breaks down it will be worth $200. If it doesn't break down it will be worth $1000. If the probability that the car breaks down is 25%, what is the expected value of Fan’s car?

Question 9 8 / 8 points

A person has a utility function is given by

We know this person is

u = x1/4

$800

$600

$850

$750

Not enough information to decide

u = w2

risk averse and will prefer risk pooling over non-pooled risks

risk averse and will over insure at the fair premium

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Question 10 7 / 7 points

Consider the following diagram of a utility function. Let

risk neutral and will be willing to take fair bets

a risk lover and will never buy insurance

a risk lover and may be willing to sell insurance

pA + (1 − p)F = E

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Select all of the following statements that are true:

This agent would always trade a gamble for its expected value

The marginal utility of wealth is decreasing

The point E is the Certainty Equivalent

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Question 11 0 / 6 points

Consider a expected utility maximizing consumer with preferences represented by

If they face a loss that occurs with a 15 % probabilty, (select all that apply)

Question 12 0 / 6 points

Risk pooling can not decrease risk if ...

The point C is the Certainty Equivalent

The point B is the expected utility

u(w) = 10ln(w)

fair insurance will be priced at 15 cents per dollar of coverage

they will choose to fully insure themselves with fair insurance

they will always buy more insurance than a risk neutral person

fair insurance will leave them with wealth equal to their certainty equivalent

If the amount of risk is small enough

Risks are not independent

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Question 13 6 / 6 points

___7500___

Question 14 7 / 7 points

Dan is an expected utility maximizer with a utility function over wealth given by

Dan faces a gamble of where there are equal chances to win $3 or $4. The certainty equivalent of this gamble is

Enough people pool their risk

If people have different risk preferences

Risks are independent

A person has wealth of $40,000. If they have an accident they must spend $30,000 on car repairs. Their utility function is given by

, where w is equal to their wealth. They do not get into an accident with a 75% chance and they get into an accident with a 25% chance.

What is the total fair premium for full insurance for this person?

U = w1/2

u(w) = 2 + 10w2

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Attempt Score:72 / 100 - 72 %

Overall Grade (first attempt):72 / 100 - 72 %

Done

34.5

16

Not enough information to compute

5

12.5