Filters
Question type
Study Flashcards

Table 22-1 The citizens of Mayville are having a severe budget shortage and are faced with eliminating athletics from the town high school.The town administrator has determined that the town can afford to maintain one sport.Exactly one of the three choices will prevail,and the choice will be made by way of pairwise voting,with the majority determining the outcome on each vote.The preferences of the voters are summarized in the table below. Table 22-1 The citizens of Mayville are having a severe budget shortage and are faced with eliminating athletics from the town high school.The town administrator has determined that the town can afford to maintain one sport.Exactly one of the three choices will prevail,and the choice will be made by way of pairwise voting,with the majority determining the outcome on each vote.The preferences of the voters are summarized in the table below. -Refer to Table 22-1.Explain why the Condorcet paradox applies to this voting situation. -Refer to Table 22-1.Explain why the Condorcet paradox applies to this voting situation.

Correct Answer

verifed

verified

The majority rule do...

View Answer

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


A) signal.
B) screen.
C) efficiency wage.
D) agent.

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

Correct Answer

verifed

verified

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) None of the above
F) A) and B)

Correct Answer

verifed

verified

Table 22-9 Table 22-9 -Refer to Table 22-9.The table shows the preferences of 100 voters over three possible outcomes: A,B,and C.Which of the following statements is true? A) In pairwise majority voting,B is preferred to A,A is preferred to C,and B is preferred to C. B) In pairwise majority voting,C is preferred to B,B is preferred to A,and C is preferred to A. C) In pairwise majority voting,B is preferred to A,A is preferred to C,and C is preferred to B. D) In pairwise majority voting,A is preferred to C,C is preferred to B,and A is preferred to B. -Refer to Table 22-9.The table shows the preferences of 100 voters over three possible outcomes: A,B,and C.Which of the following statements is true?


A) In pairwise majority voting,B is preferred to A,A is preferred to C,and B is preferred to C.
B) In pairwise majority voting,C is preferred to B,B is preferred to A,and C is preferred to A.
C) In pairwise majority voting,B is preferred to A,A is preferred to C,and C is preferred to B.
D) In pairwise majority voting,A is preferred to C,C is preferred to B,and A is preferred to B.

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

Correct Answer

verifed

verified

Which of the following students exhibits satisficing behavior?


A) Mick studies his economics notes every night so that he can be sure to earn a perfect score on his exam.
B) Bill studies his economics notes for a few hours the night before the test because he will be satisfied with a C on his exam.
C) Marguerite studies extensively as she will only be satisfied with a very high score.
D) None of these students exhibits satisficing behavior.

E) B) and C)
F) None of the above

Correct Answer

verifed

verified

Table 22-13 The fortunate residents of Anytown have a budget surplus.The mayor decided that it is only fair to have the residents vote on what to do with the surplus.The mayor has narrowed the options down to three possible projects: a playground,a library,or a swimming pool.The voters fall into three categories and have preferences as illustrated in the table. Table 22-13 The fortunate residents of Anytown have a budget surplus.The mayor decided that it is only fair to have the residents vote on what to do with the surplus.The mayor has narrowed the options down to three possible projects: a playground,a library,or a swimming pool.The voters fall into three categories and have preferences as illustrated in the table. -Refer to Table 22-13.Which of the following statements is correct regarding the results of pairwise voting in Anytown? A) The results of pairwise voting depend on the order of the pairs but satisfy the transitivity property. B) The results of pairwise voting do not depend on the order of the pairs and satisfy the transitivity property. C) The results of pairwise voting depend on the order of the pairs and do not satisfy the transitivity property. D) The results of pairwise voting do not depend on the order of the pairs and do not satisfy the transitivity property. -Refer to Table 22-13.Which of the following statements is correct regarding the results of pairwise voting in Anytown?


A) The results of pairwise voting depend on the order of the pairs but satisfy the transitivity property.
B) The results of pairwise voting do not depend on the order of the pairs and satisfy the transitivity property.
C) The results of pairwise voting depend on the order of the pairs and do not satisfy the transitivity property.
D) The results of pairwise voting do not depend on the order of the pairs and do not satisfy the transitivity property.

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

Correct Answer

verifed

verified

Adverse selection


A) occurs when the overall quality of choices facing a consumer is very low.
B) is a greater problem for employees than employers.
C) occurs more frequently in the market for new cars than used cars.
D) is not easily remedied by free markets.

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

Correct Answer

verifed

verified

Arrow's impossibility theorem demonstrates the impossibility of the median voter theorem.

A) True
B) False

Correct Answer

verifed

verified

A travel agency offers a money-back guarantee for vacationers taking their first cruise in case they do not enjoy the experience.This guarantee is an example of

Correct Answer

verifed

verified

The Condorcet paradox tells us that,even though it is impossible to satisfy all of Arrow's properties of a desirable voting system,pairwise majority voting will always satisfy transitivity.

A) True
B) False

Correct Answer

verifed

verified

State one reason why government intervention may not be a good solution to an asymmetric information problem.

Correct Answer

verifed

verified

Table 22-1 The citizens of Mayville are having a severe budget shortage and are faced with eliminating athletics from the town high school.The town administrator has determined that the town can afford to maintain one sport.Exactly one of the three choices will prevail,and the choice will be made by way of pairwise voting,with the majority determining the outcome on each vote.The preferences of the voters are summarized in the table below. Table 22-1 The citizens of Mayville are having a severe budget shortage and are faced with eliminating athletics from the town high school.The town administrator has determined that the town can afford to maintain one sport.Exactly one of the three choices will prevail,and the choice will be made by way of pairwise voting,with the majority determining the outcome on each vote.The preferences of the voters are summarized in the table below. -Refer to Table 22-1.The town administrator is a huge basketball fan.If he wants to ensure that basketball is the winning sport,how should he set up the voting? A) First vote: hockey vs.basketball;Second vote: winner of first vote vs.football B) First vote: hockey vs.football;Second vote: winner of first vote vs.basketball C) First vote: basketball vs.football;Second vote: winner of first vote vs.hockey D) It is impossible for basketball to win according to Arrow's impossibility theorem. -Refer to Table 22-1.The town administrator is a huge basketball fan.If he wants to ensure that basketball is the winning sport,how should he set up the voting?


A) First vote: hockey vs.basketball;Second vote: winner of first vote vs.football
B) First vote: hockey vs.football;Second vote: winner of first vote vs.basketball
C) First vote: basketball vs.football;Second vote: winner of first vote vs.hockey
D) It is impossible for basketball to win according to Arrow's impossibility theorem.

E) A) and B)
F) None of the above

Correct Answer

verifed

verified

A college professor hires a student to babysit her children and pays the student an efficiency-wage.Which of the following is correct about the wage the student earns?


A) The wage is higher than the wage the student could earn working a similar job elsewhere.
B) The wage is the same as the wage the student could earn working a similar job elsewhere.
C) The wage is lower than the wage the student could earn working a similar job elsewhere.
D) The wage is likely to result in the student shirking responsibilities.

E) B) and C)
F) All of the above

Correct Answer

verifed

verified

Table 22-11 The following table shows the preferences of four types of voters over four possible alternatives as well as the percentage of the electorate with the given preferences. Table 22-11 The following table shows the preferences of four types of voters over four possible alternatives as well as the percentage of the electorate with the given preferences. -Refer to Table 22-11.If the vote is conducted using a Borda count where each person's first choice receives 4 points,each person's second choice 3 points,each person's third choice 2 points,and each person's fourth choice 1 point,which alternative would win? A) W B) X C) Y D) Z -Refer to Table 22-11.If the vote is conducted using a Borda count where each person's first choice receives 4 points,each person's second choice 3 points,each person's third choice 2 points,and each person's fourth choice 1 point,which alternative would win?


A) W
B) X
C) Y
D) Z

E) A) and D)
F) None of the above

Correct Answer

verifed

verified

Table 22-2 Three longtime friends-Jack,Ryan,and Colin-are deciding how they will spend their Sunday afternoon.They all agree that they should do one of three things: go to a movie,go to the zoo,or go to a museum.They also agree that they will have two pairwise votes to determine how to spend their evening,with the majority determining the outcome on each vote.The first,second,and third choices for each person are as indicated in the table below. Table 22-2 Three longtime friends-Jack,Ryan,and Colin-are deciding how they will spend their Sunday afternoon.They all agree that they should do one of three things: go to a movie,go to the zoo,or go to a museum.They also agree that they will have two pairwise votes to determine how to spend their evening,with the majority determining the outcome on each vote.The first,second,and third choices for each person are as indicated in the table below. -Refer to Table 22-2.If (1) the first vote pits baseball game against movie, and (2) the second vote pits zoo against the winner of the first vote,then the outcome is as follows: A) Baseball game wins the first vote and baseball game wins the second vote,so they go to a baseball game. B) Baseball game wins the first vote and zoo wins the second vote,so they go to the zoo. C) Movie wins the first vote and movie wins the second vote,so they go to a movie. D) Movie wins the first vote and zoo wins the second vote,so they go to the zoo. -Refer to Table 22-2.If (1) the first vote pits "baseball game" against "movie," and (2) the second vote pits "zoo" against the winner of the first vote,then the outcome is as follows:


A) "Baseball game" wins the first vote and "baseball game" wins the second vote,so they go to a baseball game.
B) "Baseball game" wins the first vote and "zoo" wins the second vote,so they go to the zoo.
C) "Movie" wins the first vote and "movie" wins the second vote,so they go to a movie.
D) "Movie" wins the first vote and "zoo" wins the second vote,so they go to the zoo.

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

Correct Answer

verifed

verified

Asymmetric information


A) is not an area of current research in economics.
B) can take the form of a hidden action or a hidden characteristic.
C) explains Arrow's impossibility theorem.
D) is uncommon in corporate management.

E) All of the above
F) A) and D)

Correct Answer

verifed

verified

Explain the Condorcet paradox.To which type of voting system does it apply?

Correct Answer

verifed

verified

The Condorcet paradox applies directly t...

View Answer

Table 22-12 The following table shows the number of voters preferring various amounts of spending on a new school. Table 22-12 The following table shows the number of voters preferring various amounts of spending on a new school. -Refer to Table 22-12.Suppose the voters are asked to choose between $0.5 and $2.0.If all voters cast a vote for the spending amount closest to their own preference,which spending amount will win a majority of the votes? A) $0.5 B) $2.0 C) Neither.The vote will be a tie. D) Neither,since the median spending amount,$1.5,will always win in a vote. -Refer to Table 22-12.Suppose the voters are asked to choose between $0.5 and $2.0.If all voters cast a vote for the spending amount closest to their own preference,which spending amount will win a majority of the votes?


A) $0.5
B) $2.0
C) Neither.The vote will be a tie.
D) Neither,since the median spending amount,$1.5,will always win in a vote.

E) B) and C)
F) None of the above

Correct Answer

verifed

verified

Adverse selection is


A) the tendency of a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behavior.
B) an action taken by an uninformed party to induce an informed party to reveal information.
C) the failure of majority voting to produce transitive preferences for society.
D) the tendency for the mix of unobserved attributes to become undesirable from the standpoint of an uninformed party.

E) A) and B)
F) None of the above

Correct Answer

verifed

verified

Assume there are nine voters in a certain small town and let x = the preferred number of dollars spent per person per month on garbage collection.For Voters 1,2,and 3,x = $10;for Voter 4,x = $15;for Voter 5,x = $18;and for Voters 6,7,8 and 9,x = $20.The median voter is


A) Voter 3.
B) Voter 4.
C) Voter 5.
D) Voter 6.

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

Correct Answer

verifed

verified

Showing 341 - 360 of 380

Related Exams

Exam 1

Ten Principles of Economics

387 Questions

Exam 2

Thinking Like an Economist

569 Questions

Exam 3

Interdependence and the Gains From Trade

463 Questions

Exam 4

The Market Forces of Supply and Demand

606 Questions

Exam 5

Elasticity and Its Application

524 Questions

Exam 6

Supply,demand,and Government Policies

593 Questions

Exam 7

Consumers,producers,and the Efficiency of Markets

496 Questions

Exam 8

Application: The Costs of Taxation

453 Questions

Exam 9

Application: International Trade

441 Questions

Exam 10

Externalities

473 Questions

Exam 11

Public Goods and Common Resources

388 Questions

Exam 12

The Design of the Tax System

499 Questions

Exam 13

The Costs of Production

507 Questions

Exam 14

Firms in Competitive Markets

502 Questions

Exam 15

Monopoly

541 Questions

Exam 16

Monopolistic Competition

521 Questions

Exam 17

Oligopoly

428 Questions

Exam 18

The Market for the Factors of Production

477 Questions

Exam 19

Earnings and Discrimination

425 Questions

Exam 20

Income Inequality and Poverty

399 Questions

Exam 21

The Theory of Consumer Choice

492 Questions

Exam 23

Measuring a Nations Income

464 Questions

Exam 24

Measuring the Cost of Living

452 Questions

Exam 25

Production and Growth

457 Questions

Exam 26

Saving,investment,and the Financial System

502 Questions

Exam 27

The Basic Tools of Finance

461 Questions

Exam 28

Unemployment

610 Questions

Exam 29

The Monetary System

461 Questions

Exam 30

Money Growth and Inflation

427 Questions

Exam 31

Open-Economy Macroeconomic Models

488 Questions

Exam 32

A Macroeconomic Theory of the Open Economy

404 Questions

Exam 33

Aggregate Demand and Aggregate Supply

511 Questions

Exam 34

The Influence of Monetary and Fiscal Policy on Aggregate Demand

451 Questions

Exam 35

The Short-Run Trade-Off Between Inflation and Unemployment

415 Questions

Exam 36

Six Debates Over Macroeconomic Policy

273 Questions

Show Answer