Exam 22: Frontiers of Microeconomics

A community has five voters who are interested in only one issue: the government's spending on local parks.If Anthony would like the government to spend $12,000 on parks,Bob prefers $7,000,Carey prefers $4,000,Diane prefers $2,000,and Elaine prefers $0,how much spending would a politician seeking to win the election select when running against one opponent?

Arrow's impossibility theorem shows that no voting system can satisfy which of the following properties?

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

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

Table 22-3 The citizens of Paradoxopolis will decide whether to build a new school,build a new park,or build a new road.Exactly one of the three choices will prevail,and the choice will be made by way of pairwise voting,with the majority determining the outcome on each vote.The preferences of the voters are summarized in the table below. -Refer to Table 22-3.If the citizens of Paradoxopolis use a Borda count,rather than pairwise majority voting,to decide what to build,then they will build a new

When homeowners sell a house,part of the paperwork they complete is a statement of disclosure on which the homeowners are supposed to reveal everything that they know is wrong with the house.The purpose of the statement of disclosure is to try to solve the

Table 22-3 The citizens of Paradoxopolis will decide whether to build a new school,build a new park,or build a new road.Exactly one of the three choices will prevail,and the choice will be made by way of pairwise voting,with the majority determining the outcome on each vote.The preferences of the voters are summarized in the table below. -Refer to Table 22-3.Which of the following statements is correct?

Economic policy that appears to be ideal in an economics textbook may not be the final policy that is approved by elected politicians because

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

Which of the following is not correct?

Which of the following offers an explanation as to why the principal-agent problem exists for a firm?

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?

Explain the Condorcet paradox.To which type of voting system does it apply?

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

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

In economics,a difference in access to relevant knowledge is called a(n)

Borda count is a voting method often used in polls that rank sports teams.

The science of economics is a finished jewel,perfect and unchanging.

Which of the following statements is not correct?

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 economic theory assumes,he should propose that