Exam 22: Frontiers in Microeconomics.

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.Which of the following statements is correct?

What is the name of the mathematical result showing that no voting system can simultaneously satisfy the properties of unanimity,transitivity,independence of irrelevant alternatives,and no dictators?

Pedro,who knows nothing about construction,paid Benito to remodel a room in his house.Two years later,one wall in the remodeled room crumbled because Benito used poor-quality materials.This illustrates which economic problem?

Behavioral economics

The Latin term caveat emptor,meaning "let the buyer beware," brings to mind the problem of

Economic theory assumes that voters,politicians,and other political participants are largely motivated by

People interpret evidence to confirm beliefs they already hold.This statement is an example of which of the following systematic mistakes that people make?

In corporations,a principal-agent problem can arise when

Herbert Simon,one of the first social scientists to combine the study of economics and psychology,suggested that humans should be viewed as

If the median voter theorem holds,

Employers can try to overcome the moral-hazard problem involving their employees by

Which of the following is not an example of signaling?

When one party is better informed about an economic situation than another party,economists describe the problem as one of

The median voter's preferred outcome is the same as the

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

Normally,we expect voters' preferences to exhibit a property called

Information asymmetry refers to

An implication of the median voter theorem is that,in a race between Republicans and Democrats,

Asymmetric information,political economy,and behavioral economics

Economic theory assumes people are always rational.Yet observation indicates that people do not always behave rationally.Which of the following is not a systematic mistake people make in their decisionmaking?