Exam 22: Frontiers in Microeconomics

Which of the following is an example of screening?

Signaling is an action taken by an uninformed party to induce an informed party to reveal information.

A mother gives her teenage daughter two choices: spend 20 minutes cleaning her room today or spend 25 minutes cleaning her room tomorrow. The same mother gives her same daughter two additional choices: clean out the garage for 20 minutes next Tuesday or 25 minutes next Wednesday. According to economic theory,

In his 1951 book Social Choice and Individual Values, Arrow's perfect voting system satisfies all of the following properties except

A person who makes decisions that are "merely good enough" is called a(n)

Which of the following is not correct?

Arrow's impossibility theorem states that the majority rule fails to produce transitive preferences for society.

Table 22-20 The table below shows the preferred city budget (in millions) for in the city of Springfield. -Refer to Table 22-20. In an election, each voter will select the budget closest to his or her most preferred budget. Using this information, what is the most preferred budget of the median voter?

If A is preferred to B and C is preferred to D, then B must be preferred to C to satisfy transitivity.

An insurance company that writes automobile policies tries to separate safe drivers from risky drivers by offering policies that feature different deductibles and different premiums. This practice is best described as an example of

Suppose the voters in a small country are choosing between two options, A and B. After the voting is complete it is discovered that option A received 100% of the votes with option B receiving no votes. After the vote, however, the country's leader decides that option B is better for the people and implements B rather than A. The voting system in this country fails which of Arrow's properties of a desirable voting system?

Table 22-19 The 600 voters of Appleton are deciding by majority rule how much to spend on a new library. -Refer to Table 22-19. The median voter prefers to spend

Table 22-5 The citizens of Anytown will decide whether to build a new library, a recreation center, or an arena. 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 22-5. If (1) the first vote pits "library" against "recreation center," and (2) the second vote pits "arena" against the winner of the first vote, then the outcome is as follows:

Which of the following is not an example of a principal-agent relationship?

Which of the following statements is correct?

A driver knows more than his auto insurer about how cautiously he drives. This is an example of

In economics, a difference in access to relevant knowledge is called a(n)

Economists use basic psychological insights in the field of study called

Condorcet explained his paradox in a 1951 book called Social Choice and Individual Values.

​Suppose there are 3 possible outcomes to a vote: A, B, and C. If voters prefer A to B, B to C, and C to A, which of the following concepts are violated?