Exam 22: Frontiers in Microeconomics.

How have insights from the field of psychology influenced the thinking of economists in recent years?

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

Your friend works at a coffee shop on campus and regularly gives away free coffee to you and your friends when you visit.This is an example of

Table 22-8 -Refer to Table 22-8.The table shows the preferences of four types of voters over four possible outcomes: A,B,C,D.In addition,the table shows the percentage of voters of each type.Based on this information,which of the following statements is false?

The classic example of adverse selection is the market for used cars.

Economic experiments show that people care more about winning a game than about its intrinsic fairness.

Eli and Peyton are playing the ultimatum game,starting with $100.The coin flip results in Eli being the one to propose a division of the $100.If Eli acts as experimental evidence shows,he will likely propose that

Table 22-14 The Johnson family is planning a vacation and, though Mr. and Mrs. Johnson will be paying for the trip, they have decided to use a democratic voting process to choose their destination. The family members' preferences are reflected in the table below. -Refer to Table 22-14.If the family uses a Borda count to make their decision,what is their vacation destination?

In the case of a moral-hazard problem,which of the following is not a way for the principal to encourage the agent to act more responsibly?

Which of the following is an example of signaling?

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

In a vote between options A,B,and C,option C wins.When option B is eliminated and a vote is taken between option A and option C,option A wins.The voting system used fails to satisfy which of Arrow's properties of a desirable voting system?

Majority rule will produce the outcome most preferred by the median voter,as demonstrated by the

Majority rule will produce the outcome most preferred by the median voter.

Suppose that an economics professor selects two students,Byron and Regina,to participate in a classroom experiment.The professor gives Byron ten $1 bills.Byron must pick an allocation of the ten $1 bills to offer to Regina.If Regina accepts the allocation,each student keeps his or her portion of the money.If Regina rejects the allocation,the professor keeps the $10,and each student receives nothing.Byron selects $9 for himself and $1 for Regina.Based on the studies of human decision making,which of the following statements is correct?

Which of the following is a characteristic of a corporation but not of a small family-owned business?

Adverse selection

Explain what is meant by "asymmetric information." Identify and explain the two basic types of problems that arise when there is asymmetric information.

The suggestion that people are "satisficers" is similar to the view that people

Table 22-1 Three friends -- Tricia, Sarah, and Katie -- are deciding where to go together for vacation. They all agree that they should go to one of three places: Ireland, Italy, or Greece. 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.If the friends change their minds and decide to choose a vacation destination using a Borda count,then