Answer all 10 questions in complete sentences. There will be point reductions for answering in incomplete sentences.
- List and describe in detail the three distinguishing features of the labor market.
- What is the exchange dilemma and why is it relevant to modern economic problems?
- Explain the difference between endogenous and exogenous enforcement. Provide one example of both
- In the context of the prisoners dilemma, what is a sub-optimal outcome in a society or economy?
- What are the three tendencies in modern economies and how do they relate to solving economic problems?
- What are the two characteristics of the Rawlsian societal preferences?
- Define the Stopler-Samuelson theorem and explain how it can be used to justify import tariffs.
- Explain the difference between ex-ante institutional environment and ex-post institutional arrangements.
- What are the two necessary, but not sufficient conditions for solving collective action problems?
- Differentiate club goods and common pool resources based on the two fundamental properties of commodities and provide an example of both.