(See Problem 2

question 19

Multiple Choice

(See Problem 2.) A small community has 40 people, each of whom has a wealth of $5,000. Each individual must choose whether to contribute $200 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 b times the total amount of money contributed by individuals in the community.

• A) If 40b > 1, everybody is better off if all contribute to the public entertainment fund than if nobody contributes, but if 40b < 1, everybody is better off if nobody contributes than if all contribute.
• B) Everybody is worse off if all contribute than if nobody contributes if b > 1, but if b < 1, everybody is better off if nobody contributes.
• C) If 40b > 1, there is a dominant strategy equilibrium in which everybody contributes.
• D) This game has a dominant strategy equilibrium in which nobody contributes anything for public entertainment.
• E) In order for there to be a dominant strategy equilibrium in which all contribute, it must be that b > 40.

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Definitions:

Refractory Period

A phase right after stimulation where a nerve or muscle cannot respond to additional stimulation.

Making Out

Engaging in an intense or passionate kissing session, often with the use of hands to touch the other person.

Vasocongestion

Engorgement of blood vessels.

Engorgement

The process of swelling or becoming engorged, often referring to body tissues, which can occur due to the accumulation of fluid or blood.