Content quiz 5

Question 1

A car park on the UC campus is not considered a public good as

Answer 1

a car park on campus is able to be made excludable

Question 2

Prospect Theory suggests that people are

Answer 2

more sensitive to decreases in wealth than increases in wealth

Question 3

In a Pareto efficient equilibrium

Answer 3

trying to make someone better off will make someone else worse off.

Question 4

All points on the contract curve

Answer 4

are Pareto efficient.

Question 5

Suppose the total endowments of two goods are 20 and 50. The perimeter of the Edgeworth box will be

Answer 5

140

Question 6

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Question text
Suppose the total endowments of two goods are 20 and 50. If one person is consuming 10 units of the first good, the second person must be consuming

Answer 6

10 units of the first good.

Question 7

An allocation of goods is Pareto-optimal in a many-person exchange economy if MRS is

Answer 7

identical for all individuals.