Final INFO

Question 1

rule of law

Answer 1

law must apply to everyone

Question 2

paradox of value

Answer 2

price is determined by margin

Question 3

example of law of unintended consequence

Answer 3

peltman theory

Question 4

limitations of financial incentives

Answer 4

snake example

Question 5

example of egoism not working

Answer 5

prisoners dillema

Question 6

adverse selection

Answer 6

good things underprice
bad things overpriced

Question 7

four moral philosophies

Answer 7

consequentialism
relativism
utilitarianism
egoism

Question 8

economic interest groups

Answer 8

unions that fight for social cause

Question 9

categorical imperative principle

Answer 9

follow ethical law no matter what

Question 10

characteristics of public good

Answer 10

1) non rivalry
2) non excludable

Question 11

universality vs reversibility

Answer 11

universality: rule must apply to everyone
reversibility: rule must apply to me

Question 12

paternalism

Answer 12

limiting persons liberty for their own good

Question 13

transfer seeking

Answer 13

attempt to increase wealth without creating new wealth

Question 14

second welfare theorem

Answer 14

social welfare can be maximized through redistribution of endowments

Question 15

kants’ categorical imperative

Answer 15

act according to principles that are universalized

Question 16

majority government

Answer 16

majority votes wins

Question 17

plurality

Answer 17

winner must have more votes than any other candidate

Question 18

proportional vote

Answer 18

close relationship between popular vote and number of candidates elected