ECon Colol

Front

In economics, institutions refer to

Back

the rules of the game.

Front

Which of the following statements regarding bargaining power is correct? In a dictator game, the Proposer has all the bargaining power. In an ultimatum game, increasing the number of Responders reduces the Proposer's bargaining power. In an ultimatum game, the Proposer has all of the bargaining power. In a dictator game, increasing the number of Responders reduces the Proposer's bargaining power.

Back

In a dictator game, the Proposer has all the bargaining power.

Front

Which of the following statements regarding Pareto efficiency is correct? There is only one Pareto-efficient allocation., A Pareto-efficient allocation maximizes the total surplus., At a Pareto-efficient allocation, it is possible to make one person better off without making another person worse off., A Pareto-efficient allocation is a fair allocation.

Back

A Pareto-efficient allocation maximizes the total surplus.

Front

Bruno is a landowner and Angela is a farmer who pays a share of her grain output to Bruno as rent for the use of the land. Consider the following figure, which shows Angela's and Bruno's combined feasible set and the interpretation of the allocation at point E. Angela prefers G to F.

Back

Angela prefers G to F.

Front

Which of the following statements is correct? 2.1 6
The economically feasible set is the area between Angela's biological survival constraint and the feasible frontier.
The economically feasible set is a subset of the technically feasible set.
Angela is indifferent between all points on her biological survival constraint.
Angela's reservation indifference curve can be below her biological survival constraint.

Back

The economically feasible set is the area between Angela's biological survival constraint and the feasible frontier.

Front

Based on the figure, which of the following statements is correct? 2.1 7
If Bruno cannot coerce Angela but has all the bargaining power he will offer Angela allocation D.
Bruno is indifferent between allocation C and D since both are Pareto Efficient.
If Bruno can coerce Angela he will choose allocation E.
If Bruno cannot coerce Angela but has all the bargaining power he will offer Angela allocation B.

Back

If Bruno cannot coerce Angela but has all the bargaining power he will offer Angela allocation D.

Front

Based on this information, which of the following statements is correct? 2.1 8
Options:
Moving from F to any point on line CD is Pareto-improving.
The relative bargaining power of Bruno and Angela determines the number of hours worked along the Pareto efficiency curve.
Both Bruno and Angela are better off at F than at D.
F is not Pareto efficient because the surplus is not maximized.

Back

F is not Pareto efficient because the surplus is not maximized.

Front

Given the information in the figure, which of the following statements must be true? More equal crews are fiercer fighters. The Gini coefficient on pirate ships was much lower than the Gini coefficient on navy ships. Pirate crewmen earned higher incomes than pirate captains. Pirate crewmen earned higher incomes than navy crewmen.

Back

The Gini coefficient on pirate ships was much lower than the Gini coefficient on navy ships.

Front

The figure below is the Lorenz curve of a population. Based on this figure, which of the following statements are correct? 2.2 2: 50% of the population owns 100% of the land. The wealthiest 30% of the population owns 70% of the land. The wealthiest 1% of the population owns 5% of the land. 80% of the population owns no land.

Back

50% of the population owns 100% of the land.

Front

The figure shows the Lorenz curve for market income and disposable income in the Netherlands in 2010. What can be inferred from this?

Back

The poorest fifth of the Dutch population has virtually no market income.