Question 1

An action taken by an informed party to reveal private information to an uninformed party is called

Accepted Answer

The answer of An action taken by an informed party...

Question 2

Table 22-2
Three longtime friends-Allen, Brian, and Cody-are deciding how they will spend their Sunday afternoon. They all agree that they should do one of three things: go to a movie, play golf, or go to a baseball game. They also agree that they will have two pairwise votes to determine how to spend their afternoon, 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 "golf," and (2)  the second vote pits "movie" against the winner of the first vote, then

Accepted Answer

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 "movie" wins the second vote, so they go to a movie.
C)  "golf" wins the first vote and "golf" wins the second vote, so they play golf.
D)  "golf" wins the first vote and "movie" wins the second vote, so they go to a movie.E) A) and D)
F) A) and C)

Question 3

Mankiw argues that a primary difference between taxing products like gasoline and taxing soda and other sugary drinks is that

Accepted Answer

A)  consumption of gasoline causes negative externalities on society while consumption of soda affects the consumer.
B)  the government can generate significant revenue from the gas tax but not from a soda tax.
C)  gasoline has inelastic demand but soda has elastic demand.
D)  Both a and c are correct.E) B) and C)
F) C) and D)

Question 4

​Which of the following frontier areas of microeconomics applies economic tools to the study of government (or public)  choice?

Accepted Answer

A)  ​Political economy
B)  ​Behavioral economics
C)  ​Game theory
D)  ​Industrial organizationE) None of the above
F) A) and D)

Question 5

An example of an information asymmetry is when a worker knows more than his employer about his work effort.

Accepted Answer

A) True 
 B)False

Question 6

Studies of human decision-making show that

Accepted Answer

A)  firms are less likely to maximize profits than consumers are to maximize utility.
B)  firms are more likely to maximize profits than consumers are to maximize utility.
C)  people are irrational more often than they are rational.
D)  people are reluctant to change their minds.E) A) and C)
F) None of the above

Question 7

Table 22-13
A high school Spanish class and their teacher are planning to take a Spring Break trip abroad but they have to decide where to go. They have narrowed the options to: Spain, Mexico, Ecuador, and Costa Rica. The voters' preferences are shown in the table below. 
-Refer to Table 22-13. In a pairwise election between Costa Rica and Ecuador and then a second election between the winner and Mexico, which countries are chosen?

Accepted Answer

A)  Costa Rica is chosen in the in the first and second elections.
B)  Costa Rica is chosen in the first election and Mexico is chosen in the second.
C)  Ecuador is chosen in the first and second elections.
D)  Ecuador is chosen in the first election and Mexico is chosen in the second.E) All of the above
F) A) and D)

Question 8

Robert and Neal are playing the ultimatum game, starting with $100. Based on the coin toss, Robert is the player to propose a division of the $100. If Robert acts as economic theory assumes and Neal acts as experimental evidence shows, Neal will

Accepted Answer

A)  accept Robert's proposal of keeping $99 and offering Neal $1.
B)  accept Robert's proposal of keeping $60 and offering Neal $40.
C)  reject Robert's proposal of keeping $99 and offering Neal $1.
D)  reject Robert's proposal of keeping $60 and offering Neal $40.E) A) and B)
F) B) and C)

Question 9

Frank is given the choice between pizza and hotdogs and chooses pizza. Then, before serving him, his host tells Franks he could have a hamburger. Frank says he wants a hot dog. Which of the properties of Arrow's impossibility theorem does Frank violate?

Accepted Answer

Independen...

Question 10

The Condorcet paradox demonstrates that the order in which people vote on choices may influence the final outcome.

Accepted Answer

A) True 
 B)False

Question 11

Arrow's impossibility theorem illustrates the difficulties in creating the perfect voting system.

Accepted Answer

A) True 
 B)False

Question 12

Your city newspaper publishes a "Best of" poll that lists its readers' favorite restaurants. Mundo Bar and Grill is ranked as the best casual restaurant. Your best friend had dinner at Mundo Bar and Grill last week and commented that the food was mediocre and the service was slow. You decide not to have dinner at Mundo Bar and Grill based on your friend's experience. Your decision illustrates that people

Accepted Answer

A)  are reluctant to change their minds.
B)  are overconfident.
C)  give too much weight to a small number of vivid observations.
D)  are satisficers.E) C) and D)
F) B) and D)

Question 13

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

Accepted Answer

A)  personally satisfying, with a greater emphasis on personal consumption than on fairness.
B)  socially satisfying, with a greater emphasis on fairness than on personal consumption.
C)  good enough.
D)  risk averse.E) None of the above
F) C) and D)

Question 14

The field of political economy

Accepted Answer

A)  applies the methods of political science to microeconomics.
B)  applies the methods of political science to macroeconomics.
C)  is relevant to the issue of how active government should be in economic matters.
D)  integrates psychological insights to better understand individual choices.E) None of the above
F) A) and D)

Question 15

An unhealthy person would likely choose a medical insurance policy with a

Accepted Answer

A)  low premium and a high deductible.
B)  high premium and a high deductible.
C)  high premium and no deductible.
D)  The unhealthy person would choose not to be insured.E) A) and D)
F) A) and C)

Question 16

Table 22-14
Amy, Beth, and Connie are on a hiring committee. They have interviewed 3 candidates identified by their last names and are going to vote on which one is hired.  '
-Refer to Table 22-14. Which of the following is correct for this election? There is

Accepted Answer

A)  both transitivity and independence of irrelevant alternatives.
B)  transitivity but not independence of irrelevant alternatives.
C)  independence of irrelevant alternatives. but not transitivity.
D)  neither transitivity nor independence of irrelevant alternatives.E) A) and D)
F) A) and C)

Question 17

Table 22-1
Three friends -- Linda, Stephanie, and Jamie -- are deciding where to go together for vacation. They all agree that they should go to one of three places: France, Greece, or Italy. They also agree that they will have two pairwise votes to determine where to go on vacation, 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 22-1. Depending on the order of the pairwise voting,

Accepted Answer

A)  the friends could go to either France, Italy, or Greece.
B)  the friends could go to either France or Italy, but they will not go to Greece.
C)  the friends could go to either Italy or Greece, but they will not go to France.
D)  the friends could go to either France or Greece, but they will not go to Italy.E) A) and D)
F) C) and D)

Question 18

Table 22-14
Amy, Beth, and Connie are on a hiring committee. They have interviewed 3 candidates identified by their last names and are going to vote on which one is hired.  '
-Refer to Table 22-14. Which results for pairwise voting are correct?

Accepted Answer

A)  In a vote between Adams and Campbell, and then a vote between the winner and Brown, Adams wins.
B)  In a vote between Brown and Campbell, and then a vote between the winner and Adams, Adams wins.
C)  Both A and B are correct.
D)  Neither A nor B is correct.E) None of the above
F) All of the above

Question 19

Table 22-18
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 22-18. In a majority vote between alternatives W and X, what percentage of the votes would W receive?

Accepted Answer

A)  35%
B)  45%
C)  55%
D)  65%E) A) and C)
F) B) and C)

Question 20

Suppose that there are 175 voters in an election and that 80 of them prefer a $100 budget while the remainder prefer a $150 budget. Which of the following statements is true?

Accepted Answer

A)  The Condorcet Paradox predicts that the $100 budget will win even though fewer people prefer that budget.
B)  The median voter theorem predicts that the winning budget will be $125, the median of the preferences of the two types of voters.
C)  Arrow's impossibility theorem says that the winning budget cannot be determined in this election since there is no unanimity.
D)  None of the above.E) A) and B)
F) A) and C)

Exam 22: Frontiers in Microeconomics

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Studies of human decision-making show that

Correct Answer
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Table 22-14 Amy, Beth, and Connie are on a hiring committee. They have interviewed 3 candidates identified by their last names and are going to vote on which one is hired. ' -Refer to Table 22-14. Which of the following is correct for this election? There is

Correct Answer
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Mankiw argues that a primary difference between taxing products like gasoline and taxing soda and other sugary drinks is that

Correct Answer
verified

The field of political economy

Correct Answer
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An unhealthy person would likely choose a medical insurance policy with a

Correct Answer
verified

The Condorcet paradox demonstrates that the order in which people vote on choices may influence the final outcome.

Correct Answer
verified

An example of an information asymmetry is when a worker knows more than his employer about his work effort.

Correct Answer
verified

Robert and Neal are playing the ultimatum game, starting with $100. Based on the coin toss, Robert is the player to propose a division of the $100. If Robert acts as economic theory assumes and Neal acts as experimental evidence shows, Neal will

Correct Answer
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Table 22-18 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 22-18. In a majority vote between alternatives W and X, what percentage of the votes would W receive?

Correct Answer
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Which of the following frontier areas of microeconomics applies economic tools to the study of government (or public) choice?

Correct Answer
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Arrow's impossibility theorem illustrates the difficulties in creating the perfect voting system.

Correct Answer
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Table 22-14 Amy, Beth, and Connie are on a hiring committee. They have interviewed 3 candidates identified by their last names and are going to vote on which one is hired. ' -Refer to Table 22-14. Which results for pairwise voting are correct?

Correct Answer
verified

Suppose that there are 175 voters in an election and that 80 of them prefer a $100 budget while the remainder prefer a $150 budget. Which of the following statements is true?

Correct Answer
verified

An action taken by an informed party to reveal private information to an uninformed party is called

Correct Answer
verified

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

Correct Answer
verified

Frank is given the choice between pizza and hotdogs and chooses pizza. Then, before serving him, his host tells Franks he could have a hamburger. Frank says he wants a hot dog. Which of the properties of Arrow's impossibility theorem does Frank violate?

Correct Answer
verified
Independen...
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Exam 22: Frontiers in Microeconomics

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Studies of human decision-making show that

Correct AnswerverifiedShow Answer

Table 22-14 Amy, Beth, and Connie are on a hiring committee. They have interviewed 3 candidates identified by their last names and are going to vote on which one is hired. ' -Refer to Table 22-14. Which of the following is correct for this election? There is

Correct AnswerverifiedShow Answer

Mankiw argues that a primary difference between taxing products like gasoline and taxing soda and other sugary drinks is that

Correct AnswerverifiedShow Answer

The field of political economy

Correct AnswerverifiedShow Answer

An unhealthy person would likely choose a medical insurance policy with a

Correct AnswerverifiedShow Answer

The Condorcet paradox demonstrates that the order in which people vote on choices may influence the final outcome.

Correct AnswerverifiedShow Answer

An example of an information asymmetry is when a worker knows more than his employer about his work effort.

Correct AnswerverifiedShow Answer

Robert and Neal are playing the ultimatum game, starting with $100. Based on the coin toss, Robert is the player to propose a division of the $100. If Robert acts as economic theory assumes and Neal acts as experimental evidence shows, Neal will

Correct AnswerverifiedShow Answer

Table 22-18 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 22-18. In a majority vote between alternatives W and X, what percentage of the votes would W receive?

Correct AnswerverifiedShow Answer

​Which of the following frontier areas of microeconomics applies economic tools to the study of government (or public) choice?

Correct AnswerverifiedShow Answer

Arrow's impossibility theorem illustrates the difficulties in creating the perfect voting system.

Correct AnswerverifiedShow Answer

Table 22-14 Amy, Beth, and Connie are on a hiring committee. They have interviewed 3 candidates identified by their last names and are going to vote on which one is hired. ' -Refer to Table 22-14. Which results for pairwise voting are correct?

Correct AnswerverifiedShow Answer

Suppose that there are 175 voters in an election and that 80 of them prefer a $100 budget while the remainder prefer a $150 budget. Which of the following statements is true?

Correct AnswerverifiedShow Answer

An action taken by an informed party to reveal private information to an uninformed party is called

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Frank is given the choice between pizza and hotdogs and chooses pizza. Then, before serving him, his host tells Franks he could have a hamburger. Frank says he wants a hot dog. Which of the properties of Arrow's impossibility theorem does Frank violate?

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Which of the following frontier areas of microeconomics applies economic tools to the study of government (or public) choice?

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Independen...
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