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