Exam 22: Frontiers in Microeconomics.

Scenario 22-3 Three candidates, Frank, Brian, and Wanda, are running for office. There are three voters in the upcoming election: Henry, Diane, and Linda. Henry prefers Brian over Frank and Frank over Wanda. Diane prefers Wanda over Brian and Brian over Frank. Linda prefers Frank over Brian and Brian over Wanda. -Refer to Scenario 22-3.If the vote were conducted according to a Borda count system where each person's first choice receives 3 points,second choice 2 points,and third choice 1 point,the election winner would be

Which of the following would be an example of a principal trying to deal with a moral hazard problem?

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

Kevin borrowed some money from Hi Interest Bank,telling the loan officer that he intended to use the money to make repairs to his home.After getting the loan,Kevin and his girlfriend immediately took the money and headed to the nearest riverboat casino for a weekend of gambling and entertainment.

Table 22-3 The citizens of Anytown will decide whether to build a new library, a new community center, or a new ice rink. 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 (1)the first vote pits "library" against "community center," and (2)the second vote pits "ice rink" against the winner of the first vote,then the outcome is as follows:

Table 22-6 -Refer to Table 22-6.The table shows the preferences for three types of voters over three possible outcomes: A,B,and C.The table also shows the percentage of voters of each type.Based on this information,which of the following statements is true?

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

Scenario 22-5 Three members of the DiCarlo family, Vinny, Maria, and Franki, are choosing the entree for a large family reunion. Their options are: spaghetti, ravioli, lasagne, and pizza. Vinny prefers spaghetti over lasagne, lasagne over ravioli, and ravioli over pizza. Maria prefers ravioli over spaghetti, spaghetti over pizza, and pizza over lasagne. Frankie prefers pizza over ravioli, ravioli over lasagne, and lasagne over spaghetti. -Refer to Scenario 22-5.If,before any votes were cast,ravioli was eliminated from the choices and the vote were conducted according to a Borda count system where each person's first choice receives 3 points,second choice 2 points,and third choice 1 point,the election winner would be

Scenario 22-3 Three candidates, Frank, Brian, and Wanda, are running for office. There are three voters in the upcoming election: Henry, Diane, and Linda. Henry prefers Brian over Frank and Frank over Wanda. Diane prefers Wanda over Brian and Brian over Frank. Linda prefers Frank over Brian and Brian over Wanda. -Refer to Scenario 22-3.If the voters were given a choice of Frank versus Wanda first,then the winner was in a second election versus Brian,who would win?

Which of the following events best exemplifies the concept of signaling?

An implication of the median voter theorem is that Republicans and Democrats will try to align their views with those of the median voter.

Table 22-13 The fortunate residents of Anytown have a budget surplus. The mayor decided that it is only fair to have the residents vote on what to do with the surplus. The mayor has narrowed the options down to three possible projects: a playground, a library, or a swimming pool. The voters fall into three categories and have preferences as illustrated in the table. -Refer to Table 22-13.If the mayor asks the residents to choose between the library and the swimming pool using pairwise voting,

Most economic models

Table 22-15 The town of Portsmouth is considering a renovation to the high school. The voters in Portsmouth have different preferences on the budget for the renovation as displayed below. -Refer to Table 22-15.If there is a vote between a budget of $8 million and $12 million,the median voter will vote to spend

A college professor hires a student to babysit her children and pays the student an efficiency-wage.Which of the following is correct about the wage the student earns?

Table 22-9 -Refer to Table 22-9.The table shows the preferences of 100 voters over three possible outcomes: A,B,and C.Which of the following statements is true?

When markets fail,which of the following is true?

A life insurance company requires new applicants to have a medical exam prior to writing the insurance policy.This requirement is an example of

Severe adverse-selection problems may result in

Which of the following is not correct?