Course Overview and Course Concepts

Question 1

Collective Action Problems

Answer 1

when a group goal is to produce a public good but the individual goal is to free ride

Question 2

Prisoners Dilemma

Answer 2

have a shared goal, but due to an inability to communicate they can’t achieve the goal

Question 3

Coordination Problems

Answer 3

Common goal and want to work together, problems due to specific preferences and priorities

Question 4

Institutions

Answer 4

constraints on behavior in the form of rules and procedures

Question 5

Principal Agent Problems

Answer 5

principal has more power and has been authorized to delegate to agents, agents want different things than principal

Question 6

Free-Riding

Answer 6

a person who chooses to receive the benefits of a “public good” or a “positive externality” without contributing to paying the costs of producing those benefits

Question 7

Public Good

Answer 7

goods which can’t be limited to the people who produce them, non excludable and non rival

Question 8

Norm

Answer 8

informal social rules, recognized by everyone has a norm

Question 9

democratic backsliding

Answer 9

gradual decline in the quality of democracy