PROPERTY AND WEALTH: UNIT 5

Question 1

Institution

Answer 1

Written and unwritten rules of the game governing social interactions

Question 2

Constraints:

Answer 2

what people can and cannot do when they interact

Question 3

Incentives:

Answer 3

rewards and punishments= the benefits and costs of the alternative courses of actions

Question 4

Power:

Answer 4

the ability to do and get the things wants in opposition to the intentions of others

Question 5

Bargaining power:

Answer 5

The extent of your advantage in securing a larger share of the economic rents in an interaction you are in

Question 6

Pareto Criteria:

Answer 6

Outcome A Pareto dominates outcome B if at least one party would be better off with A than B and nobody would be worse off. To be desirable a certain allocation needs to be Pareto dominate others

Question 7

Fairness Criteria:

Answer 7

A set of judgements about either the characteristics of an allocation itself or the way it was designed or both