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ECC2000 - ECC5900 - Microeconomics - S2 2026
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If all the cars that are worth more than $X are appraised and all the cars that are worth less than $X are sold without appraisal, then if your car is worth $X, how much money would you have left if you had it appraised and then sold it for its true value?
If nobody had their car appraised, what would the market price for used cars in Tyrosh be?
ABC Explosives has purchased fire insurance for its factory. It can institute a fire prevention program, which would cost $90, but which would lower the probability of a fire from 0.01 to 0.001. The insurance company cannot determine whether ABC has instituted the program. However, it charges a deductible in the event of a fire (i.e. ABC has to pay a certain amount to the insurance company if a fire occurs). What is the smallest deductible that will encourage ABC to institute the fire prevention program?
Is this allocation Pareto efficient? {(FA;CA),(FB;CB)}={(0.5; 0.5) ; (0.5; 0.5)}
Is this allocation Pareto efficient? {(FA;CA), (FB;CB)}={(1, 1); (0, 0)}
Is this allocation Pareto efficient? {(FA;CA), (FB;CB)}={(1, 0); (0, 1)}
Which point on the Edgeworth box below represents the endowment?
Suppose Peters is a nonsmoker and Walters is allergic to chocolate. What would the contract curve look like in this case?
Suppose that Bob gives Anna 3.5 bananas in exchange for an apple.
Suppose that Anna gives Bob 3 bananas in exchange for an apple.