Can you please give me the letter answers to these questions? 2. Consider a publ
ID: 1127251 • Letter: C
Question
Can you please give me the letter answers to these questions?
2. Consider a public beach just outside the city which becomes overcrowded and congested on summer weekends as people escape the heat of the city. From an economic standpoint
(a) Charging an admission fee for the beach would lead to a more efficient allocation of resources.
(b) Closing the beach after it becomes overcrowded would lead to a more efficient allocation of resources.
(c) Combining an admission charge with rules that close the beach after it becomes overcrowded would lead to a more efficient allocation of resources.
(d) All of the above.
(e) None of the above.
A
cooperate
selfish
B
cooperate
10, 10
4, 8
selfish
8, 4
6, 6
3. Which statement best describes the outcome of the game?
(a) The game has no unique solution.
(b A and B have different dominant strategies.
(c) Both parties will act selfishly.
(d) The game has no Nash equilibrium.
(e) B will cooperate if A behaves selfishly and act selfishly if A cooperates.
4. If A is risk averse and B risk neutral
(a) both parties are likely to act selfishly.
(b) B has no dominant strategy.
(c) A has no dominant strategy.
(d) the game has two Nash equilibria.
(e) all of the above.
5. Imagine that A hires B to paint her portrait for $1000. The contract contains a clause stating that A will pay B $1000 only if she is satisfied with the painting.
(a) Even if A rejects the painting in “bad faith,” A’s behavior is Pareto efficient because the parties agreed to this contingency at the time the contract was signed.
(b) The contract price will be higher when A has the option to reject the painting.
(c) Since B’s reliance expenditure equals the cost of painting the portrait, the reliance and expectation measure of damages are identical.
(d) It is Pareto inefficient to require A to give a reason for rejecting the portrait even if other people admire the work.
(e) All of the above.
6. Contributory negligence is to “last clear chance” as
(a) negligence is to strict liability.
(b) excusing the injurer’s negligence is to excusing the victim’s contributory negligence.
(c) negligence is to comparative negligence
(d) negligence is to assumption of risk.
(e) victim due care is to injurer due care.
A
cooperate
selfish
B
cooperate
10, 10
4, 8
selfish
8, 4
6, 6
Explanation / Answer
2)
Efficient outcome is reached where the price is decided through demand and supply forces and these forces truely reflect demand and supply.
thus most appropriate answer is (A)