Exam 22: Frontiers of Microeconomics

Table 22-1 Three longtime friends-Sam, Diane, and Cliff-are deciding how they will spend their Saturday evening. They all agree that they should do one of three things: go to a movie, go to a concert, or go out to dinner. 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 22-1.Which of the following statements is correct?

Some of the systematic mistakes that people make include

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?

Most economic models

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

Table 22-3 -Refer to Table 22-3.The table shows the preferences for three types of voters over three possible outcomes: X,Y,and Z.The table also shows the percentage of voters of each type.Based on this information,which of the following statements is true?

In his 1951 book,Social Choice and Individual Values,Kenneth Arrow defined a "perfect" voting system.That system includes which of the following features?

Recent developments in political economy

The buyer runs a risk of being sold a good of low quality when there is

Scenario 22-1 At issue in a particular city vote is how much to spend, per person, on city parks next year. Among the 10,000 voters, 1,000 prefer to spend $30 per person, but no more; 3,500 prefer to spend $45 per person, but no more; 2,500 prefer to spend $80 per person, but no more; and 3,000 prefer to spend $150 per person, but no more. -Refer to Scenario 22-1.If there is a vote on whether to spend $80 per person or $110 per person,the median voter will vote to spend

Frequently it is the case that: (1)A worker knows more than his employer about how much effort he puts into his job,and (2)the seller of a used car knows more than the buyer about the car's condition.

Table 22-1 Three longtime friends-Sam, Diane, and Cliff-are deciding how they will spend their Saturday evening. They all agree that they should do one of three things: go to a movie, go to a concert, or go out to dinner. 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 22-1.If Sam,Diane,and Cliff use a Borda count,rather than pairwise majority voting,to decide how to spend their evening,then they will go

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

Recent research that links psychology and economics is called

ABC Inc.is concerned about the work effort of its employees.To minimize this problem,which of the following would be an effective policy for ABC to implement?

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?

The Condorcet voting paradox applies to situations in which voters

The temptation of imperfectly-monitored workers to shirk their responsibilities is

Evidence from studies of workers' choices on whether or not to participate in 401(k)plans suggests that the workers' behavior appears to exhibit

The moral hazard problem and the desire of firms to lessen that problem serve as a plausible explanation for a firm paying above-equilibrium wages to its workers.