The Graph Consists of a Collection of Nodes (The Dots $\frac { 3 } { 16 }$

question 11

Multiple Choice

The graph consists of a collection of nodes (the dots in the figure) connected by edges (line segments from one node to another) . A move on a graph is a move from one node to another along the single edge. Find the probability of moving from Start to Finish in a sequence of two random moves in the graph. (All directions are equally likely.)

• A) \(\frac { 3 } { 16 }\)
• B) \(\frac { 1 } { 4 }\)
• C) \(\frac { 1 } { 16 }\)
• D) \(\frac { 1 } { 8 }\)
• E) \(\frac { 3 } { 8 }\)

---

Definitions:

Pigovian Tax

A tax or charge levied on the production of a product that generates negative externalities. If set correctly, the tax will precisely offset the overallocation (overproduction) generated by the negative externality.

Clean Up

The process of removing contaminants, waste, or undesirable items from an area, thus restoring it to its original or acceptable condition.

Moral Hazard

The situation where one party takes on risk because they know that another party will bear the consequences.

Adverse Selection

A situation in insurance and markets where higher-risk individuals are more likely to select and use insurance or services, potentially leading to market inefficiencies.