A Small Community Has 10 People, Each of Whom Has

question 10

Multiple Choice

A small community has 10 people, each of whom has a wealth of $3,000.Each individual must choose whether to contribute $300 or $0 to the support of public entertainment for their community.The money value of the benefit that a person gets from this public entertainment is .50 times the total amount of money contributed by individuals in the community.

• A)This game has a dominant strategy equilibrium in which all 10 citizens contribute $300 to support public entertainment.
• B)This game has two Nash equilibria, one in which everybody contributes $300 and one in which no-body contributes $300.
• C)This game has no Nash equilibrium in pure strategies, but has a Nash equilibrium in mixed strategies.
• D)This game has a Nash equilibrium in which 5 people contribute $300 and for public entertainment and 5 people contribute nothing.
• E)This game has a dominant strategy equilibrium in which nobody contributes anything for public entertainment.

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Definitions:

Reliability

The extent to which a test yields consistent results, as assessed by the consistency of scores on two halves of the test, or on retesting.

Mental Age

A measure of an individual's cognitive ability compared to the average cognitive ability for their chronological age.

Heredity

The genetic transmission of characteristics from parents to offspring, determining certain physical or behavioral traits.

Mental Age

A measure of an individual's mental aptitude based on the average abilities of people at a certain chronological age, irrespective of the person's actual chronological age.