Abstain 27

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Unformatted text preview: nce that Bob’s car will be stolen. The risk premium associated with this gamble is: [Pen. 0] A. B. C. D. E. bc ac yb ab Abstain 24. Natural experiments are experiments in which [Pen. 0] A. the researcher is able to control the environment and introduce specific interventions B. the researcher examines the impact of nature on individual preferences C. respondent bias is eliminated D. an exogenous change occurs which the researcher has no control over E. Abstain 12 Use the information that follows to answer questions 25 and 26. The normal form game below describes an interaction between Row Player and Column Player. Co‐operate Defect Cooperate 4,4 0,8 Defect 8,0 1,1 25. In this interaction, [Pen. 0] A. A credible commitment device would allow the players to reach a Pareto‐ superior outcome B. The dominant strategy is to co‐operate C. Social welfare is maximised from the pursuit of rational, self‐interest D. There is no Nash equilibrium in this game E. Abstain 26. Experimental evidence on this game shows that: [Pen. 1] A. Defect is the dominant strategy B. Narrowing the differential between the payoff from...
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This note was uploaded on 05/23/2011 for the course ECON 203 taught by Professor Jules during the Spring '11 term at University of Cape Town.

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