Exam 14: Torts and Contracts

-Consider the game depicted in Figure 14.5, which summarizes the payoffs to a tortfeasor and an injured person resulting from an act of negligence. The Nash equilibrium strategy profile for this game is:

-Consider the game depicted in Figure 14.9, which summarizes the payoffs to a tortfeasor and an injured person resulting from an act of negligence. This situation most likely represents which of the following tort law regimes?

Suppose that the cost of avoiding an accident if a motorist and pedestrian adopts a diligent strategy is $2. If an accident occurs, the pedestrian incurs accident costs of $30. If both players adopt a negligent strategy, the probability of an accident is 0.1. If either player adopts a diligent strategy, there is 0.05 chance that an accident will occur. If both players adopt a diligent strategy, the probability that an accident will occur is 0.01. The Nash equilibrium strategy profile for a strict-liability-with-contributory-negligence tort law regime is:

-Consider the game depicted in Figure 14.1, which summarizes the payoffs to a tortfeasor and an injured person resulting from an act of negligence. This situation most likely represents which of the following tort law regimes?

A lender has to decide whether to extend a $100 loan in exchange for a promise by the borrower to repay the loan and 10 percent simple interest in one year. The borrower plans to invest the proceeds of the loan with a certain 11 percent rate of return. The lender believes there is a 95 percent chance that the loan will be repaid. If the lender moves first, the subgame perfect equilibrium for this game is:

-Consider the game depicted in Figure 14.7, which summarizes the payoffs to a tortfeasor and an injured person resulting from an act of negligence. This situation most likely represents which of the following tort law regimes?

-Consider the game depicted in Figure 14.4, which summarizes the payoffs to a tortfeasor and an injured person resulting from an act of negligence. This situation most likely represents which of the following tort law regimes?

-Consider the game depicted in Figure 14.1, which summarizes the payoffs to a tortfeasor and an injured person resulting from an act of negligence. The Nash equilibrium strategy profile for this game is:

-Consider the game depicted in Figure 14.10. in the text If a motorist hits a pedestrian, the pedestrian incurs accident costs of $50. The cost of being diligent for both players is $5. If both players are diligent, the probability that an accident will occur is 5 percent. The Nash equilibrium strategy profile for this game is:

-Consider Figure the game depicted in 14.5, which summarizes the payoffs to a tortfeasor and an injured person resulting from an act of negligence. This situation most likely represents which of the following tort law regimes?

Negligence refers to:

-Consider the game depicted in Figure 14.3, which summarizes the payoffs to a tortfeasor and an injured person resulting from an act of negligence. The Nash equilibrium strategy profile for this game is:

-Consider the game depicted in Figure 14.9, which summarizes the payoffs to a tortfeasor and an injured person resulting from an act of negligence. The Nash equilibrium strategy profile for this game is:

-Consider the game depicted in Figure 14.8, which summarizes the payoffs to a tortfeasor and an injured person resulting from an act of negligence. The Nash equilibrium strategy profile for this game is:

-Consider the game depicted in Figure 14.12. If a motorist hits a pedestrian, the pedestrian incurs accident costs of $50. The cost of being diligent for both players is $5. If both players are diligent, the probability that an accident will occur is 5 percent. The Nash equilibrium strategy profile for this game is:

A contract: I. Is a written or oral agreement between two or more parties to render a service in exchange for something of value. II. May be enforceable in the courts if a party fails to abide by some or all of its terms and conditions. III. Is always a written and prepared by lawyers. Which of the following is correct?

Suppose that the cost of avoiding an accident if a motorist and pedestrian adopts a diligent strategy is $2. If an accident occurs, the pedestrian incurs accident costs of $30. If both players adopt a negligent strategy, the probability of an accident is 0.1. If either player adopts a diligent strategy, there is 0.05 chance that an accident willoccur. If both players adopt a diligent strategy, the probability that an accident will occur is 0.01. The Nash equilibrium strategy profile for a pure-strict-liability tort law regime is:

-Consider the game depicted in Figure 14.2, which summarizes the payoffs to a tortfeasor and an injured person resulting from an act of negligence. The Nash equilibrium strategy profile for this game is:

-Consider the game depicted in Figure 14.10. If a motorist hits a pedestrian, the pedestrian incurs accident costs of $50. The cost of being diligent for both players is $5. If both players are diligent, the probability that an accident will occur is 5 percent. The Nash equilibrium strategy profile for this game is:

-Consider the game depicted in Figure 14.13. in the text If a motorist hits a pedestrian, the pedestrian incurs accident costs of $50. The cost of being diligent for both players is $5. If both players are diligent, the probability that an accident will occur is 5 percent. The payoffs from alternative strategy profiles suggest that the prevailing tort law regime is: