14.) Suppose fold ball workers in Canada earn $15 per hour, while gold ball workers in Burma earn $2 per hour on average. Assume the workers in Canada are 10 times more productive then workers in Burma. What happens given free trade and zero transactions costs? A. Workers in Canada will have their wages fall to $2 per hour B. Workers in Burma wages increase to $15 per hour C. Workers in the Burma wages decrease to $1.50 per hour D. Workers in Canada will have their wages fall to $13 per hour E. None of the above will happen 15.) If an elasticity coefficient is -.9, this implies: A. Demand is elastic B. The food is a normal good C. The food is a substitute good D. The good is an inferior good E. None of the above is correct 16.) Which of the following is not an assumption or implication of public goods theory? A. One person's consumption of the good leaves less of the good for others to consume B. An inefficient quantity oft eh public good is produced in a free market C. Consumers exercise strategic behavior and will not pay the producers for their output their output D. It is not economically feasible to exclude the free-rider from consuming the good E. Public goods imply a prisoner's dilemma exchange setting 17.) The theory of contestable markets implies: + m/files/exam-hg83s43b2k/ Final for ECON 103 with Professor Rustici at GMU: Koofers A. The number of actual market competitors is relevant to the level of competitiveness B. Potential competition is the same as actual competition when sunk costs are zero C. Sunk costs have nothing to do with market contestability since sunk costs are in the past D. The more sunk costs, the more hit and run entry tactics used by competitors E. In a perfect contestable market, a single seller behaves like a monopolist (restricting output and raising price)