Higher employment rents make workers less likely to quit their job.

It equals the wage you receive in your employment.

Higher employment rents make workers more likely to quit their job.

They are the costs you have to pay for your employment.

The no-shirking wage will be higher than the

worker’s productivity.

Paying above the worker’s reservation wage results

in employment rent.

Employers must set wages equal to workers’

reservation wages to cover the cost of work effort.

The employer has to choose the highest wage that

gives an employee an incentive to work hard.

It equals the wage you

receive in your employment.

Employers can use high employment rents to exert

power over employees.

They are the costs you have to pay for your

employment.

Higher employment rents make workers more likely to

quit their job.

Bruce is better off not working, irrespective of the actions of the other members.

Bruce’s net income when all three members work is £80.

The dominant strategy equilibrium of this public goods game is when no one works.

The socially optimal outcome (one with the highest total net income) is when all work.

An allocation can be both Pareto efficient and dominated at the same time.

An allocation can be neither Pareto efficient nor dominated.

An allocation is Pareto efficient if it is impossible to make any individual better off without making someone else worse off.

Pareto efficiency is achieved if the benefit of allocation is higher than the cost of allocation.

Taxes and benefits.

Birthday presents.

Theft of property.

“Buy-now-pay-later” deals.

If China chooses BAU, US will also choose BAU.

If the benefit from reducing emissions increases by more than 20 million dollars for both countries as long as at least one country chooses to restrict, (restrict, restrict) is a Nash equilibrium.

If there is a reduction of more than 25 million dollars in the cost for the country to take measures to reduce emissions due to technological advancements, the US and China will reach the outcome that is best for both.

The Nash equilibrium results in the highest possible payoffs for both players.