G202 KREFT EXAM SCRIPT 1 2026 FULL
QUESTIONS AND 100% VERIFIED SOLUTIONS
◉ T1: Which of the following is not one of the competitive
advantages that allowed Uber to disrupt the taxicab market?
- Efficient scaling in a two-sided market.
- Avoidance of regulatory compliance cost.
- Technology-based reduction in search cost.
- Incumbent advantage with shaping local regulations. Answer:
Incumbent advantage with shaping local regulations.
◉ T1: The taxicab market is causing society to lose out on a net
benefit. We know that this inefficiency is caused by the fact that the
taxicabs are providing
- too few rides, as the next ride provided would have more consumer
value than production costs.
- too many rides, because the last ride provided had more consumer
value than production costs.
- too few rides, as the next ride provided would have more
production costs than consumer value.
- too many rides, because the last ride provided had more
production costs than consumer value. Answer: too few rides, as the
next ride provided would have more consumer value than
production costs.
, ◉ T1: Imagine that the NYC taxicab market is currently under-
providing rides relative to the socially efficient amount. If the NYC
council enacts a productive regulation that makes it harder and
more costly to obtain a taxicab license, what will be the impact on
social efficiency?
- Efficiency increases.
- Efficiency decreases.
- Efficiency remains the same as the productive regulation will not
change the number of taxi cabs in the market.
- We are unable to tell the effects of the productive regulation on
market efficiency. Answer: Efficiency decreases
◉ T1: Assume that the socially efficient output level in the
residential solar panel market is 1,000 units per week, but the
industry is only producing 800 units per week at current capacity.
The industry's under-production is causing
- a net cost on society, because the last panel produced had more
production costs than consumer value.
- society to lose out on a net benefit, as the next panel produced
would have more production costs than consumer value.
- society to lose out on a net benefit, as the next panel produced
would have more consumer value than productive costs.
- a net cost on society, because the last panel produced had more
consumer value than productive costs. Answer: society to lose out
QUESTIONS AND 100% VERIFIED SOLUTIONS
◉ T1: Which of the following is not one of the competitive
advantages that allowed Uber to disrupt the taxicab market?
- Efficient scaling in a two-sided market.
- Avoidance of regulatory compliance cost.
- Technology-based reduction in search cost.
- Incumbent advantage with shaping local regulations. Answer:
Incumbent advantage with shaping local regulations.
◉ T1: The taxicab market is causing society to lose out on a net
benefit. We know that this inefficiency is caused by the fact that the
taxicabs are providing
- too few rides, as the next ride provided would have more consumer
value than production costs.
- too many rides, because the last ride provided had more consumer
value than production costs.
- too few rides, as the next ride provided would have more
production costs than consumer value.
- too many rides, because the last ride provided had more
production costs than consumer value. Answer: too few rides, as the
next ride provided would have more consumer value than
production costs.
, ◉ T1: Imagine that the NYC taxicab market is currently under-
providing rides relative to the socially efficient amount. If the NYC
council enacts a productive regulation that makes it harder and
more costly to obtain a taxicab license, what will be the impact on
social efficiency?
- Efficiency increases.
- Efficiency decreases.
- Efficiency remains the same as the productive regulation will not
change the number of taxi cabs in the market.
- We are unable to tell the effects of the productive regulation on
market efficiency. Answer: Efficiency decreases
◉ T1: Assume that the socially efficient output level in the
residential solar panel market is 1,000 units per week, but the
industry is only producing 800 units per week at current capacity.
The industry's under-production is causing
- a net cost on society, because the last panel produced had more
production costs than consumer value.
- society to lose out on a net benefit, as the next panel produced
would have more production costs than consumer value.
- society to lose out on a net benefit, as the next panel produced
would have more consumer value than productive costs.
- a net cost on society, because the last panel produced had more
consumer value than productive costs. Answer: society to lose out
