Which of the following is an example of the Tragedy of the Commons?

Select one:

a. American Airlines charges a higher price for a seat on the same flight for to a business traveler than they do to a tourist.

b. At a football game when one person stands up to get a better view of the game, everyone around them also must stand to be able to see the game.

c. Food placed on a table at a busy convention is usually taken by the first participants to arrive.

d. Government tax breaks usually go to those with the most political influence.

If A and B are substitute goods, an increase in the price of good A would:

Select one:

a. have no effect on the quantity demanded of B.

b. lead to an increase in demand for B.

c. lead to a decrease in demand for B.

d. none of the statements associated with this question are correct.

e. Statistics.

If the equilibrium price for fountain pens is $15 but the market price currently is $10 what will be the result and why?

Select one:

a. A shortage since quantity demanded will be greater than quantity supplied.

b. A surplus since the quantity supplied will be greater than the quantity demanded.

c. Equilibrium since the quantity demanded will equal the quantity supplied.

d. Efficiency since producers are able to charge what they desire, and consumers pay what they want.

Fred has no idea what the Ultimatum Game has to tell us about economic theory. You explain to Fred that the outcome of laboratory tests of the Ultimatum Game suggests:

Select one:

a. Firms will cut prices if competitors cut prices first, but are reluctant to be the first mover.

b. People are willing to suffer an economic loss to punish those they deem as being unfair.

c. Central banks will renege on past promises to control inflation when it actually comes time to pursue contractionary monetary policies.

d. Reduction in unemployment benefits will result in more unemployed workers taking job offers as they now must work of face economic hardships.