Exam (elaborations)
Harvard edx Contrac Law FULL latest updated 2023
- Course
- Institution
Harvard edx Contrac Law FULL latest updated 2023
[Show more]
Seller
Follow
MedGrad
Reviews received
Content preview
Harvard edx Contrac Law FULL latest updated 2023Unit 1
Deadweight Loss Problem 1
2/2 points (graded)
Vera and Vladimir live in the Arctic. Vera is an expert ice fisher, and Vladimir is
an excellent hunter. Neither is any good at the other activity – Vera is a
terrible hunter, and Vladimir is awful at fishing.
Vera can only ice fish in the winter, but she can freeze what she catches to
eat during the summer. Vladimir can only hunt in the summer, but he
can’t freeze what he kills.
It’s winter, and all of the meat that Vladimir killed during the summer has
been eaten or has spoiled. He’s hungry. He sees that Vera is still slowly but
surely catching fish, and that she isn’t eating all of them – she’s freezing
the extras. He asks her if he can have some of her extra fish, but she says
no, because she needs to freeze them so she’ll have something to eat in the
summer, when she can’t fish. As a result, Vladimir doesn’t have anything to
eat.
What is the deadweight loss in this situation?
Vera is freezing her extra fish.
Vladimir has nothing to eat in the winter.
correct Vera won't have anything to eat in
the summer.
Vladimir will be unable to eat all of the meat he catches.
Answer
Correct:
You are correct. The food is inefficiently allocated between Vladimir and
Vera, so Vladimir does not have anything to eat during the winter.
Why is this deadweight loss happening?
Vera and Vladimir do not trust each other; therefore, Vladimir
cannot make a promise to give Vera meat in the summer in exchange
for fish.
Vladimir cannot fish; therefore, Vladimir is going hungry.
They cannot agree on a fair price for fish, therefore Vera does not want
to sell her fish.
Schlumberger-Private
,Harvard edx Contrac Law FULL latest updated 2023
They cannot trade, therefore they are unable take advantage of
the surplus produced by the other. correct
Schlumberger-Private
,Harvard edx Contrac Law FULL latest updated 2023
Answer
Correct:
This is the correct answer. If Vladimir and Vera figured out a way to trade
their surplus food, they could both have enough to eat throughout the year.
Deadweight Loss Problem 2
2/2 points (graded)
Alex and Amy are at a company dinner, where there is exactly one roll of
silverware per person.
Amy picks up a roll that accidentally contains two knives and no spoon,
and discovers she has no way of eating her soup. Amy buttered and ate
her bread.
Meanwhile, Alex opens his roll to see that he has two spoons and no knife.
He has some trouble buttering his bread, but he figures out a way to
butter it with the spoon. This draws disapproving frowns from those
around him. He has no trouble eating his soup.
The dinner is very large, and Amy tries to search the room for someone
with an extra spoon. But there are too many people, so she gives up.
What are the deadweight losses in this situation? (Select 2 Answers)
Amy could not eat her
soup. Amy ate her
bread.
Alex made a mess buttering his bread.
Amy wasted her time looking for a spoon without any
success. Alex ate his soup.
correct
Answer
Correct
:
Correct. If Amy had the extra spoon, she could have eaten her soup.
Correct. If Alex had Amy's extra knife, he could have buttered his bread
without making a mess.
What is causing it? (Select 1 Answer)
, Harvard edx Contrac Law FULL latest updated 2023
Each person has only one roll of
silverware. Alex has made both of his
spoons dirty.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller MedGrad. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75323 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now