working well in work

Which of the following is an example of a social dilemma?

• Dirty dishes piling up in the kitchen sink of your shared student accommodation.

• The problem of how to look after the elderly in society.

• Traffic jams due to a sub-optimally high level of car usage.

• Dilemmas discussed on social media.

Which of the following are public goods?

• Library books.

• Fresh air.

• Official statistics.

• Streetlights.

Anthony loves going to the opera while Becky loves watching football. The following diagram shows the payoffs for their choice of activity. For example if Anthony chooses opera and Becky chooses football, then the activities are valued at GBP 10 to Anthony and GBP 20 to Becky, respectively. Assume that they can only choose one activity (i.e. they cannot randomise). Based on this information, which of the following statements is correct?

• There are two Nash equilibria: (Opera, Opera) and (Football, Football).

• If Anthony announces that he will choose Opera and sticks to it, then (Opera, Opera) will be chosen.

• If Anthony offers GBP 50 to Becky for coming to the opera with him, then (Opera, Opera) will definitely be chosen.

• If Anthony offers GBP 20 to Becky for coming to the opera with him, then (Opera, Opera) may be chosen.

Alan and Beatrice are students who are suspected of colluding on their assignment. The examiners are going to interview each of them individually, in separate rooms. The following table shows the payoffs of Alan and Beatrice, if both were completely selfish, depending on whether each decides to Deny or Confess. Assume that unless stated otherwise, Alan and Beatrice are completely selfish. In which of the following cases could the examiners' scheme fail to produce the outcome (Confess, Confess)?

• Alan and Beatrice hate lying.

• If one person continues to deny but then finds out that the other person has confessed, the disappointment is equivalent to an extra 10 marks off the mark he/she is given.

• Alan and Beatrice manage to communicate using their mobile phones.

• Alan is so fond of Beatrice that he would never confess that they colluded.

The following figure depicts possible indifference curves of Alan, whose utility depends on his and/or his friend Beatrice's levels of consumption. Alan's consumption is along the horizontal axis while Beatrice's consumption is along the vertical axis. Which of the indifference curves below represent altruistic preferences?

• A

• D

• B

• C

Bruno is a landowner and Angela is a farmer who pays a share of her grain output to Bruno for the use of the land. The figure shows Angela and Bruno's feasible frontier, Angela's biological survival constraint, and her reservation indifference curve. If Angela does not work, she receives a ration of 2.5 bushels from the government. Which of the following statements is correct?

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

• Angela's reservation indifference curve may not necessarily go through Z.

• Angela's reservation indifference curve can be below her biological survival constraint.

• The economically feasible set can be an empty set.

The figure below is the Lorenz curve of a population. Based on this figure, which of the following statements are correct?

• The Gini coefficient is less than 0.5.

• 30% of the population owns 1% of the land each.

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

• 20% of the population owns 2% of the land each.

Peter, John, and James are discussing how to share three apples and three oranges. Which of the following statements regarding Pareto efficient allocations is correct?

• There cannot be more than one Pareto efficient allocation.

• Assuming that at least one of them likes both apples and oranges, a Pareto efficient allocation may not exist.

• It is always Pareto efficient for Peter, John, and James to have one apple and one orange each.

• Assuming that Peter likes both apples and oranges, there is no possible Pareto improvement to an allocation in which he has all the apples and oranges.

Which of the following statements regarding substantive judgements of fairness is correct?

• If all individuals receive an equal income then this allocation cannot be made fairer.

• Fairness may depend on the individual's freedom to choose without socially imposed limits.

• Happiness cannot be objectively measured and therefore cannot be used to evaluate the fairness of an allocation.

• Two people making substantive judgements of fairness about the same situation must necessarily agree.

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. Based on the figure, which of the following statements are correct?

• Bruno is totally selfish, then H is his most preferred allocation of the four.

• Angela prefers G to working 12 hours and consuming 10 bushels.

• Angela can be indifferent between G and H.

• G and/or E can be Angela's choice, depending on the shape of her indifference curves.