Eco 550 Week 7 Quiz 5, Chapter 10

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ECO 550 Week 7 Quiz 5, Chapter 10

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Download answer at http://www.examtutorials.com/course/eco-550-week-7-quiz-5-chapter-10/
Question 161. A travel agency enters into a contract with a hotel chain which gives it priority access to 25 percent of its rooms in major tourist destinations throughout the year. The contract encourages the hotel chain to increase the number of rooms in each of these hotels. The investment made by the hotel chain corresponds to which of the following aspects of specificity?Task specificityLocational specificityDedicated specificityHuman specificityQuestion 171. If parties to a contract can anticipate the court’s decision in the event of a dispute with some degree of certainty:opportunistic behavior will never be detected.opportunistic behavior will be partially detected.there will be less room for opportunism.only one of the parties will be able to act opportunistically.Question 181. Refer to Table 10-1. What would be the combined gain of the two if both breach the unitization contract?The matrix given below represents the payoffs to oil well owners Mike and Frasel if they enter into a unitization contract. Each of the owners know the exact amount of oil in the pool and the market price of oil.Table 10-1$22$20$28$32Question 191. Fixing a payment schedule in an agreement:allows the seller to easily access loanable funds.increases the uncertainty associated with the cost of production.allows the seller to charge a high price for his product.ensures the delivery of goods at a high price.Question 201. Which of the following can be classified as a highly specific asset?A country’s soldiersA wind turbine in an installation that produces "renewable" electricityA cattle farmA cruise shipQuestion 211. Suppose Jonah and Carlos have a contract, which Carlos chooses to breach. Jonah sues, and a court orders Carlos to pay him the amount he expected to gain at the time they made the contract, net of any amount he actually did receive after the breach. The form of payment which the court specifies in this example is called:a contingent fee.a specific performance.a capitation.expectation damages.Question 221. Which of the following is a legal remedy for a breach of the contract between parties?Liquidated damagesImprisonmentUnitizationSpecificityQuestion 231. Refer to Table 10-1. Under expectation damages, Frasel’s breach of the contract would lower his net payoff to:The matrix given below represents the payoffs to oil well owners Mike and Frasel if they enter into a unitization contract. Each of the owners know the exact amount of oil in the pool and the market price of oil.Table 10-1$6.$8.$16.$10.Question 241. _____ is an example of human specificity which raises the risks associated with opportunism.Car insurance purchased by an individual for his/her favorite car.Investment of an employer in company-specific skills.Purchasing immovable machines for a particular facility.Investment in research and developmentQuestion 251. Escalators present in a contract must state:at what interval the contract price should automatically change at a fixed rate.when the price will change and by what formula the new price will be calculated.when the contract should be terminated and how the cost of termination should be shared.when the contract should be renewed and the terms governing the renewal.Question 261. Which of the following will be an efficient payment scheme for a defendant’s attorney, who is experienced in handling similar cases in the past?Contingency feesCapitation feesHourly billingQuality based billingQuestion 271. A payment arrangement between an attorney and a plaintiff, in which the plaintiff agrees to pay a certain lump-sum amount at the outset and no more in the future, regardless of how the case develops is called:contingency fees.capitation fees.liquidation.one-time settlement.Question 281. Which of the following examples can be associated with the task specificity aspect of an asset?An employer’s investment in employee skill building.Purchasing machines which can be used to produce only a particular product.Building a facility in a low cost locality.An employer’s investment in office renovation.Question 291. _____ is a contract that specifies actions to be taken if various situations come to prevail.An insurance policyContingencyUnitizationAn escalatorQuestion 301. Which of the following may require the parties to renegotiate certain parts of a contract if market conditions change drastically?AnswerTermination clauseOmnibus clauseAdjustment clauseReopener clause 
http://www.examtutorials.com/course/eco-550-week-7-quiz-5-chapter-10/Download answer at https://www.examtutorials.com/course/eco-550-week-7-quiz-5-chapter-10/
Question 161. A travel agency enters into a contract with a hotel chain which gives it priority access to 25 percent of its rooms in major tourist destinations throughout the year. The contract encourages the hotel chain to increase the number of rooms in each of these hotels. The investment made by the hotel chain corresponds to which of the following aspects of specificity?Task specificityLocational specificityDedicated specificityHuman specificityQuestion 171. If parties to a contract can anticipate the court’s decision in the event of a dispute with some degree of certainty:opportunistic behavior will never be detected.opportunistic behavior will be partially detected.there will be less room for opportunism.only one of the parties will be able to act opportunistically.Question 181. Refer to Table 10-1. What would be the combined gain of the two if both breach the unitization contract?The matrix given below represents the payoffs to oil well owners Mike and Frasel if they enter into a unitization contract. Each of the owners know the exact amount of oil in the pool and the market price of oil.Table 10-1$22$20$28$32Question 191. Fixing a payment schedule in an agreement:allows the seller to easily access loanable funds.increases the uncertainty associated with the cost of production.allows the seller to charge a high price for his product.ensures the delivery of goods at a high price.Question 201. Which of the following can be classified as a highly specific asset?A country’s soldiersA wind turbine in an installation that produces "renewable" electricityA cattle farmA cruise shipQuestion 211. Suppose Jonah and Carlos have a contract, which Carlos chooses to breach. Jonah sues, and a court orders Carlos to pay him the amount he expected to gain at the time they made the contract, net of any amount he actually did receive after the breach. The form of payment which the court specifies in this example is called:a contingent fee.a specific performance.a capitation.expectation damages.Question 221. Which of the following is a legal remedy for a breach of the contract between parties?Liquidated damagesImprisonmentUnitizationSpecificityQuestion 231. Refer to Table 10-1. Under expectation damages, Frasel’s breach of the contract would lower his net payoff to:The matrix given below represents the payoffs to oil well owners Mike and Frasel if they enter into a unitization contract. Each of the owners know the exact amount of oil in the pool and the market price of oil.Table 10-1$6.$8.$16.$10.Question 241. _____ is an example of human specificity which raises the risks associated with opportunism.Car insurance purchased by an individual for his/her favorite car.Investment of an employer in company-specific skills.Purchasing immovable machines for a particular facility.Investment in research and developmentQuestion 251. Escalators present in a contract must state:at what interval the contract price should automatically change at a fixed rate.when the price will change and by what formula the new price will be calculated.when the contract should be terminated and how the cost of termination should be shared.when the contract should be renewed and the terms governing the renewal.Question 261. Which of the following will be an efficient payment scheme for a defendant’s attorney, who is experienced in handling similar cases in the past?Contingency feesCapitation feesHourly billingQuality based billingQuestion 271. A payment arrangement between an attorney and a plaintiff, in which the plaintiff agrees to pay a certain lump-sum amount at the outset and no more in the future, regardless of how the case develops is called:contingency fees.capitation fees.liquidation.one-time settlement.Question 281. Which of the following examples can be associated with the task specificity aspect of an asset?An employer’s investment in employee skill building.Purchasing machines which can be used to produce only a particular product.Building a facility in a low cost locality.An employer’s investment in office renovation.Question 291. _____ is a contract that specifies actions to be taken if various situations come to prevail.An insurance policyContingencyUnitizationAn escalatorQuestion 301. Which of the following may require the parties to renegotiate certain parts of a contract if market conditions change drastically?AnswerTermination clauseOmnibus clauseAdjustment clauseReopener clause 
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