Question 1. Briefly explain whether or not the Prisoners' Dilemma has a first-mover advantage.
Question 2. Briefly discuss the rationale for an insurance company including a deductible on a typical policy.
Question 3. Consider sales taxes. If the goal of government is to raise tax revenue when imposing such taxes, which category of goods should the government target?
On the other hand, if the goal of government is to reduce consumption of certain goods by taxing them, which category of goods should the government target?
Provide an example of a good from each category. Your examples may come from any nation.
Question 4. Compare a market which is controlled by a single price monopolist to a perfectly competitive market. Address as many issues as you can in as much detail as you can.