2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 What is a real -life example of the Coase Theorem working effectively? What are rivalry and exclusion and what are the four classi- fications of goods based on these properties? How can the government fix open-access commons problems? What is free riding ? What are four ways free riding can be reduced? What is the expected value when rolling a six -sided dice in which you are paid $2 times the number that is rolled? What it the variance of this EV? What is a fair bet? What are the three attitudes towards risk and how are they each defined? How do the certainty equivalent and risk premium relate? What are the two major types of opportunistic behavior we discussed in class? Define each of them. What are three ways to reduce adverse selection by equaliz- ing information ? What are three common ways governments and organiza- tions prevent opportunism with laws? What is the tourist-trap model? What is a principal -agent problem ? What are three common types of contracts between principals and agents? What is an incentive compatible contract