Suppose that when allocating money between two random people, Xiaoyu is a rational "expected-Rawlsian" in the sense that she will choose the allocation that maximizes the expected value of min(?1, ?2), where ?1 and ?2 are the earnings that day for person 1 and person 2, respectively. For parts (a)-(d) below, suppose that the two people are not going to get any more money that day than through the ways stated in the question.

(a) [5pts] Suppose Xiaoyu must make a decision of whether to give each of the two people $4, or to give one of them $20 and the other $0, with the "winner" selected randomly with equal probability. What will Xiaoyu choose?

(b) [10pts] Now suppose that Xiaoyu must make the above decision twice in a row. If she chooses the $20/$0 allocation twice, the winners are selected independently (that is, a coin is flipped on both occasions to determine who receives $20). What will Xiaoyu do now?

(c) [10pts] Now suppose again that Xiaoyu must make the above decision once, but she knows that one of the two people has already received $10 that day, while the other one has received nothing. What will she do?

(d) [5pts] Finally, suppose that Xiaoyu is not so rational, but instead "narrowly brackets" her decision, for each choice acting as if that choice was going to determine the day's total change in wealth for the two people. What are the answers for parts (b) and (c) in this case? Explain the intuition for any differences between your answers to parts (b) and (c) and to part (d).

(e) [5pts] Based on your answers to the previous parts, argue that it is often impossible to infer a person's social preferences (e.g. whether she dislikes or does not mind inequality) from her choices without knowing whether she brackets her choices narrowly.

2. One of the core principles I want students to take away from the class is what we've called the "economic decision-making rule," and informs our theory of individual behavior. a. Write what the economic decision-making rule is and define marginal analysis. b. Define sunk costs and opportunity costs and discuss which of the two should be included when engaging in marginal analysis. c. Explain three contexts where we have seen the economic-decision make rule, interpret it in these contexts, and explain how they inform optimal decision-making (for example, a perfectly competitive firm sets P=MC to maximize profits, which is an application of the economic decision-making rule).QUESTION 9 According to the Social Contract Theory, an action is morally right if QUESTION 10 Most people who adhere to the Social Contract Theory also agree with Egoism. O True O False QUESTION 11 The Prisoner's Dilemma attempts to show QUESTION 12 The Social Contract Theory is similar to Cultural Relativism because: They both think morality is based on majority opinion O They both think morality is just a way for society to function better O They both think there are no exceptions to the rules O They both think nobody can be wrong about morality Click Save and Submit to save and submit. Click Save All Answers to save all answers.QUESTION 8 This notion posits that human beings are willing to surrender some of their freedoms to be protected from those whose unfettered exercise of freedom harms others.? O A. Social contract theory O B. Cultural theory O C. Basic social theory O D. Environmental theory QUESTION 9 Which of the following is not one of Beccaria's three components of effective punishment? O A. They should be swift in execution O B. The offender should be publicly scrutinized O C. Punishment should be sufficiently severe O D. The offender should be certain that punishment will occur QUESTION 10 This theory assumes that offenders conduct cost-benefit analyses before conducting criminal behaviour.? O A. Social learning theory O B. Labelling theory O C. Social disorganization theory O D. Rational choice theory QUESTION 11 This theory credits the propensity to commit crime to intimate peer groups which encourage favourable definitions to crime.? O A. Social disorganization theory O B. Radical criminological theory O C. Differential association theory O D. General strain theoryQUESTION 3 In 2 paragraphs, state two criticisms of social contract theory and articulate what they find problematic about social contract theory. T T I Ariel - \"snap\" T v : Path: p The Social Contract Theory tells us we must follow whatever moral and legal rules the government decides upon. O True O False QUESTION 14 The Social Contract Theory tells us we must follow whatever moral rules society decides upon. O True O False QUESTION 15 What are three bad things about the Social Contract Theory? Why are they bad things? TTT Arial v 3 (12pt) ~ T - - - - 2 2 Path: p Words:0 / QUESTION 16 What are three good things about the Social Contract Theory? Why are they good things? TTT Arial 3 (12 pt) ~ T - - - - a