FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 22: Frontiers in Microeconomics

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 81

Multiple Choice

Review LaterAdd Note

Review Later

Table 22-11 Five voters must choose from among four options: A, B, C, or D. Each voter's preferences are summarized in the table below. Options higher in the table are more preferred by the voter. -Refer to Table 22-11. Which pairwise voting scheme would result in outcome B?

A) First, choose between A and B. Second, voters choose between the winner of the first vote and C. Third, voters choose between the winner of the second vote and D.
B) First, choose between B and C. Second, voters choose between the winner of the first vote and A. Third, voters choose between the winner of the second vote and D.
C) First, choose between B and D. Second, voters choose between the winner of the first vote and C. Third, voters choose between the winner of the second vote and A.
D) First, choose between C and D. Second, voters choose between the winner of the first vote and A. Third, voters choose between the winner of the second vote and B.

E) A) and C)
F) A) and B)

Correct Answer

verified

Show Answer

Question 82

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following statements is not correct?

A) Based on studies of human decision making, most people value fairness.
B) Based on studies of human decision making, some people's preference are inconsistent over time.
C) Government intervention is the best remedy for the problems caused by asymmetric information.
D) Advertising can be an example of a company signaling the quality of its products.

E) A) and B)
F) C) and D)

Correct Answer

verified

Show Answer

Question 83

Short Answer

Review LaterAdd Note

Scenario 22-6 ​ Shana owns a boutique that sells high-end women's clothing and accessories. Katie works part-time at the boutique and frequently is the only employee in this small store. Shana pays Katie a wage that is higher than the market wage for this type of job. When the store is not full of customers, Katie diligently works on displays and cleans to keep the store looking its best. Belinda is a customer in the store who asks Katie's opinion on the quality of some jeans she is considering purchasing. Katie tells her the quality is great even though she's had several other customers return them due to flaws. Magda is another customer who is returning a necklace without volunteering that a gem is missing. -Refer to Scenario 22-2. Why do you suppose Shana pays Katie a wage higher than the market wage?

Table 22-12 The following table shows the preferences for the five voters in a city regarding how to deal with the city's diseased trees. A = do nothing B = follow the expert's advice to remove every tree C = remove every 4th tree now and perhaps more later D = use an untested spraying alternative -Refer to Table 22-12. Consider the public policy for dealing with the diseased trees. Using a Borda count with 4 points assigned to the first choice, 3 points assigned to the second choice, 2 points assigned to the third choice, and 1 point assigned to the fourth choice, which policy wins?

Herbert Simon suggested that people are not rational maximizers but satisficers, meaning that they choose a course of action that is

In a dictator game, player A must divide $100 between player A and player B. In this game, player B does not have the opportunity to reject an offer - he or she goes home with whatever player A offers. Experiments have observed that when player A splits the $100, he or she consistently offers over $10 to player B. Which of the following comments fits best.

Which of the following frontier areas of economics incorporates some findings from psychology into the study of economic issues?

If the seller of a used car offers a limited warranty, the warranty is an example of a(n)

Table 22-15 Diane, Henry, and Linda are voting for who to promote. They can only promote one candidate. Their preferences are given in the table below. -Refer to Table 22-15. If elections were held where voters choose either Fred or Mary, and then choose either the winner or Beth, what would the results be?

Table 22-21 The following table shows the number of voters preferring various amounts of spending to develop a river to make it more attractive for canoeing and kayaking. -Refer to Table 22-21. Suppose on election day that the voters with a preference for less than $1.5 million do not show up to vote on a choice to spend either $2 million or $2.5 million. In this case, what is the preferred spending amount of the median voter (among those who actually cast a vote) ?

Borda count is a voting method often used in polls that rank sports teams.

In view of the possible need for government action in markets where asymmetric information is a problem, which of the following is a valid concern?

Which of the following sets of preferences can not satisfy the property of transitivity?

​Economists have found that some risky behaviors increase and preventative medicine use decreases when individuals in the U.S. turn 65 and qualify for Medicare (public health insurance) . This phenomenon is most consistent with which of the following concepts?

The Condorcet paradox shows that

The criminal actions of the top managers of corporations such as Enron, Tyco, WorldCom, and Adelphia are an example of moral hazard.

The mathematical result showing that, under certain assumptions, there is no scheme for aggregating individual preferences into a valid set of social preferences is called

Which of the following is a plausible explanation for a firm paying above-equilibrium wages to its workers?

Effective signals

In his 1951 book, Social Choice and Individual Values, Kenneth Arrow used the term "transitivity" to mean