(See Problem 2

question 16

Multiple Choice

(See Problem 2.) A small community has 20 people, each of whom has a wealth of $12,000. 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 b times the total amount of money contributed by individuals in the community.

• A) If 20b > 1, everybody is better off if all contribute to the public entertainment fund than if nobody contributes, but if 20b < 1, everybody is better off if nobody contributes than if all contribute.
• B) If 20b > 1, there is a dominant strategy equilibrium in which everybody contributes.
• C) 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.
• 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 > 20.

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Definitions:

Prophylactic Treatment

Preventative treatment aimed at preventing disease or complications, rather than treating them after they occur.

Combined Oral Contraceptive

A form of birth control in pill form that contains both estrogen and progestin to prevent pregnancy.

Progesterone Therapy

Medical treatment involving the hormone progesterone, used for various conditions including hormone replacement therapy and to maintain pregnancy.

Danazol

A synthetic steroid used in the treatment of endometriosis, fibrocystic breast disease, and hereditary angioedema.