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ECON 2105 MT 2 WITH 100% ACCURATE SOLUTIONS
Which of the following is an example of a social dilemma - ANSWER traffic jams dirty dishes Which of the following are public goods - ANSWER streetlights official statistics fresh air Anthony loves going to the opera while becky loves watching football -Anthony offers GBP 20 to Becky for coming to the opera with him ANSWER If
Alan and Beatrice are students who are suspected of colluding on their assignment -ANSWER Alan and Beatrice manage to communicate using their mobile phones
Alan is so fond of Beatrice that he would never confess that they colluded The following figure depicts possible indifference curves of Alan, whose utility dependson his - ANSWER d, b, c
Bruno is a landowner and Angela is a farmer who pays a share of her grain output -ANSWER The economically feasible set can be an empty set
The figure below is the Lorenz curve of a population -owns ANSWER 50% of the population
30% of the population owns Peter, John, and James -there is no possible Pareto improvement to an allocation in which he has all the apples ANSWER Assuming that Peter likes both apples and oranges, and oranges Which of the following statements regarding substantive judgements of fairness iscorrect? - ANSWER Fairness may depend on the individual's freedom to choose without socially imposed limits. Bruno is a landowner and Angela is a farmer -between G and H ANSWER Angela can be indifferent
G and/or E can be Angela's choice If Bruno is totally selfish Bruno is a landowner and Angela is a farmer -technology would allow Angela to work 22 hours in 1 minute and still survive. ANSWER A new grain production
The figure depict the efficiency wage equilibrium of a worker and a firm -firm would maximise its profits by paying an hourly wage that is $6 above the worker's ANSWER The reservation wage. Consider a worker's best response curve in the labour discipline model. -The firm's new wage offer that minimises the cost effort will be higher than GBP 12. ANSWER
Which of the following statements regarding employment rents are correct? -Employers can use high employment rents to exert power over employees. ANSWER
merger of two firms leading to savings Large supermarkets being able to drive down the cost of purchasing milk The higher the number of users of Windows 10 Consider a 2-person economy, where the owner of a firm pays 20% of the total output -ANSWER 3/
In the following game, 2 people are choosing simultaneously what to plant -There are two ways this game could be played ANSWER
According to Elinor Ostrom -sustainable resources, although it does not always succeed. ANSWER Social norms can be drawn on to enforce
Individuals care about trust reciprocity Which of the following are examples of free riding -benefiting from your efforts in a group work assignment ANSWER Fellow students
Small shareholders, having not read the accounts or the reports, are allowed to votewith large investors at a shareholders meeting
Which of the following statements regarding Nash equilibrium are correct? -In a Nash equilibrium, all players choose their best response strategy given the other ANSWER player's strategies No player has an incentive to unilaterally deviate from a Nash equilibrium A dominant strategy equilibrium is a Nash equilibrium
Anna and Brian are discussing what to watch on the TV -strategy is to watch snooker ANSWER Brians dominant
There is no dominant strategy equilibrium Which of the following statements about institutions (only considering the usage of theterm in economics) are correct? - ANSWER Institutions are the rules of the game
Institutions determine the power individuals have to get what they want in interactionswith others
Bruno is a landowner and Angela is a farmer who pays a share of her grain output -ANSWER d
The figure shows the Lorenz curve for market income and disposable income -ANSWER The difference between market income and disposable income is taxes and cash transfers. One-fifth of the Dutch population have virtually no market income. The formal calculation of the Gini coefficient is as follows -are (100, 0, 0), the Gini coefficient is 1 ANSWER When the incomes
When the incomes are (50, 50, 0), the Gini coefficient is 0.5. Peter and John have two apples and two oranges to share. -apple and two oranges and John has one apple ANSWER Peter has one
Consider and employee with a reservation wage of $6. -curve describes the effort that the employee would choose for each level of the hourly ANSWER The best response
A profit function, drawn on a graph with quantity on the horizontal axis and profit on thevertical axis - ANSWER At the peak of the profit function
Assuming no fixed costs in a simultaneous one-shot prisoners' dilemma -lower in the dominant strategy equilibrium ANSWER The players' payoffs are
Anil and Bala have the choice of using either intergrated pest control -is the only Preto inefficient outcome ANSWER (T, T)
The following diagram shows the market demand curve of Apple Cinnamon Cheerios -ANSWER The profit-maximising choice for the firm is where the highest attainable isoprofit curve is tangent to the demand curve The profit-maximising choice for the firm is where its marginal rate of substitution The profit-maximising choice for the firm is at the peak of its profit function curve The following is a table of the total cost (TC) of producing output Q for a particular firm. -ANSWER The marginal cost curve intersects the average cost curve at Q = 60.
The following table shows how the payoffs to the Singhs and Kapurs -1.75 on large petrol hungry cars ANSWER A tax is
A subsidy of 1.75 on small environment-friendly cars. If unemployment benefits increase: -firm raises the wage. ANSWER The employment rent will fall unless the
The following game represents the interaction between two software engineers. -ANSWER If Bettina can choose the format first and commit to it, then (C++, C++) will be chosen.
