Suppose Bruno does not work in this environment (i.e. has 24 hours of free time) and IC1 passes through (24, Y) where Y>0. If we take into account the fact that both Angela and Bruno value their own free time, how would this affect the Gini coefficient?

With this new rent (that brings us to point FF2), will Angela's optimal consumption bundle be pareto efficient?

Suppose FF1 represents the feasible frontier for Angela and Bruno, and FF2 represents the amount that Angela can consume after paying rent to Bruno for use of the land. Which of the following are possible rent structures that would generate this new FF2? Select all that apply.

Suppose A occurs at 16 hours of free time and C occurs at 18 hours of free time. How much of the change in hours of free time comes from the income effect? This should be a number of hours of free time, and there should be no additional words or symbols.

Suppose A occurs at 16 hours of free time and C occurs at 18 hours of free time. How much of the change in hours of free time comes from the substitution effect? This should be a number of hours of free time, and there should be no additional words or symbols.

Which of the following labeled points (A, B, or C) completes the following statement (include only the letter, do not include any other numbers, letters, or symbols; if none are correct, enter NA):  The substitution effect that occurs from moving from FF1 to FF2 can be denoted as moving from A to ___.

Suppose that An and Bai have ordered a pizza to share. Using your understanding of substantive and procedural judgments of fairness, read the following statements and select the correct one(s).

The figure below shows the budget constraints (feasible frontiers) of a worker, given by c = 15(24 -t) + m, where c is his consumption, 8≤t≤24 is his hours of free time, and m is the fixed income that he receives irrespective of whether he works or not. Two cases are shown: m = 0 and m = $50. Now assume that the worker's preferences are quasi-linear. His choice when m = 0 is A, as shown on the diagram. Read the following statements and select the correct one(s).

What is the Gini coefficient for Case 3 without bargaining? Your answer should be rounded to two digits after the decimal point.

Do these Gini coefficients align with your perceptions of the fairness of the different institutions? What do you think is happening?