Exam 22: Frontiers in Microeconomics.

Assume there are two major political parties: the Conservatives and the Liberals.What does the median voter theorem imply about the nature of the platforms (that is,policy stances)of the Conservatives and Liberals?

Valerie prefers A to B and she prefers B to C.If Valerie's preferences are transitive,then she prefers A to C.

A firm with a very good product

Riley travels a great deal,and over the past several years he has read dozens of reviews of hotel chains,all of which rave about the clean rooms and great service at Comeon Inns.Last month,Riley checked into a room at a Comeon Inn for the first time,only to find the room filthy and the service lousy.He decided the Comeon Inn chain is inferior to other hotel chains.

Scenario 22-2 The following table shows the preferences for the five voters in a city regarding how to deal with the city's diseased trees. A = do nothing B = follow the expert's advice to remove every tree C = remove every 4th tree now and perhaps more later D = use an untested spraying alternative -Refer to Scenario 22-2.Consider the public policy for dealing with diseased trees.Based on the preferences in the table,which of the following statements is correct?

In corporations,which of the following are principals but not agents?

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?

An airline knows that business travelers have more inelastic demand for travel than vacationers.That is,business travelers are often willing to pay more for airline tickets than vacationers.The airline also knows that business travelers do not like to travel over weekends.When customers request airline tickets that do not involve travel over a weekend,the airline determines that a traveler is likely a business traveler and charges a higher price.This is an example of

Your friend works at a coffee shop on campus and regularly gives away free coffee to you and your friends when you visit.In this example,your friend is the

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

Which of the following is an example of an adverse selection problem?

Which of the following is an example of satisficing behavior?

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

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

When new professors are hired,their job performance is monitored closely.If they meet their institution's standards,they will eventually receive tenure.After receiving tenure,professors' job performance is less closely monitored,and they become difficult to fire.Tenure thus creates

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 first vote pits Ireland against Italy and the second vote pits Greece against the winner of the first vote,then the outcome is as follows:

Scenario 22-4 Suppose that residents of a town are asked to vote on the best way to improve the safety of an intersection. The three choices are: a stoplight, a 4-way stop, and a 2-way stop. The voters are divided into three groups based on their preferences. Voter Type -Refer to Scenario 22-4.If the first vote pits a stoplight against a 4-way stop and the second vote pits a 2-way stop against the winner of the first vote,then the outcome is as follows:

One property of Kenneth Arrow's "perfect" voting system is that the ranking between any two outcomes A and B should not depend on whether some third outcome C is also available.Arrow called this property

Which of the following is not an example of a principal trying to solve the moral-hazard problem?

Which of the following relationships involves asymmetric information?