Question

Question 1

McDonalds buying a beef farm is an example of

Horizontal integration

Economies of scale

Vertical integration

Economies of scope

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Question 2

Firms sometimes experience diseconomies of scale when they grow too large. Which of the following can cause diseconomies of scale? Please select all that apply.

Specialised resources spread too thin

Lower wages and unionisation

Communication difficulties in large organisations

Increase in capital for workers to use

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Question 3

Traditional economics assumes firms are a coalition of stakeholders with diverse, competing objectives.

TRUE

FALSE

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Question 4

Transactions costs are

The costs of using the market

Saralies of staff

Variable costs

Fixed costs

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Question 5

University lecturers earn                          [ Select ]    ["Less", "The same as", "More"]         than lawyers. This is an example of                      [ Select ]                       ["Compensating differential", "Efficiency wages", "Discrimination", "Superstar phenomenon"]         .

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Question 6

What are some benefits of efficiency wages? Please select all that apply.

Higher worker turnover

Worker health

Worker effort

Worker quality

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Question 7

Education produces both productivity-enhancing and productivity-revealing effects

TRUE

FALSE

Answer 1