1. Three siblings, Barry, Carrie and Darren invent the world's first teleporter. As such, they patent the technology and together create a firm that holds a monopoly in the market for teleporters. After the first year of operation, they sell their firm for $1.2 million. Each of the three siblings contributed equally to the firm's success and are debating how to divide the sale money between themselves. Which of the following are Pareto efficient allocations of the profit between the siblings (all values in thousands of dollars)? a. 1200, 1200, 1200 b. 720, 720, 80 c. None of the other answers d. 300, 300, 300 e. 800, 200, 200

2. A small open economy has demand for goat cheese given by P = 20 - 0.5Q and supply given by P = Q - 4. Goat cheese is traded around the world at a price of $4 per tonne. Suppose that the government imposes a quota of 9.6 tonnes on goat cheese. How will consumer surplus be affected, relative to the free trade scenario? A. Increased by $9.6 B. None of the other answers. C. Decreased by $130.56 D. No change E. Decreased by $107.52

3. Suppose the Republic of Controlistan is hit by an epidemic against which masks prevent infection. As demand for masks increases, the price of masks also increases. Troubled by this development, the President of Controlistan decides to impose a price ceiling on masks at the market equilibrium price before the epidemic, arguing that we should not let the free market exploit the crisis for profit. Which of the following statements is/are true? i. The price ceiling will result in a shortage of masks. ii. The price ceiling will result in a deadweight loss. iii. The market equilibrium without a price ceiling will lead to the fairest outcome for society. Select one: A. Both i. and ii. are true. B. Both i. and iii. are true. C. i., ii. and iii. are all true. D. Only i. is true. E. Only iii. is true.

4. Siblings, Jake and Sara are fighting over a box of pizza. Each has the option to steal or share the box with the other. If they both decide to share, they equally share all the slices. If one decides to steal while the other wants to share, the person who steals gets the entire box. If they both decide to steal, their fighting leads to the pizza being dropped on the floor and thrown away. Their payoffs are measured in the amount of pizza slices received. If the pizza box contains 10 slices, what are the values of the 4 strategy profiles: (Share, Share), (Share, Steal), (Steal, Share), and (Steal, Steal)? A. (10, 10); (10,0); (0,10); (0,0) B. (5.0, 5.0); (0,10); (10,0); (0,0) C. (5.0, 5.0); (0,10); (10,0); (-5.0,-5.0) D. (10, 10); (0,10); (10,0); (0,0) E. (5.0, 5.0); (10,0); (0,10); (0,0)

5. Mario grows tomatoes in his garden, with the following private supply curve for kilos of tomatoes: P = 34.2 + 6Q. Every additional kilo of tomatoes requires the use of some smelly cow manure, which increases the yield by $6. However, the manure required by each additional kilo of tomatoes also causes discomfort for the neighbours, imposing a cost of $6 on them. What is the slope of the social supply curve?