A Small Community Has 40 People, Each of Whom Has

question 9

Multiple Choice

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:

Positive Behavior

Refers to actions or patterns of action that are considered beneficial, constructive, or ethically sound by societal or specific group standards.

Theory of Mind

The ability to attribute mental states, such as beliefs, desires, and intentions, to oneself and others.

Internal Causes

Factors within a person, such as beliefs, values, personality traits, or abilities, that contribute to their behavior and experiences.

Desires

Strong feelings of wanting to have something or wishing for something to happen.