A Small Community Has 40 People, Each of Whom Has

question 19

Multiple Choice

A small community has 40 people, each of whom has a wealth of $16,000.Each individual must choose whether to contribute $100 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)This game has a dominant strategy equilibrium in which nobody contributes anything for public entertainment.
• C)If 40b > 1, there is a dominant strategy equilibrium in which everybody contributes.
• D)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.
• 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:

Class Action

A lawsuit filed or defended by an individual or small group acting on behalf of a large group.

Company-Wide Policy

Guidelines and rules established by a business that apply to all employees and operations across the entire organization.

National Labor Relations Act

The National Labor Relations Act of 1935 protects the rights of employees and employers, to encourage collective bargaining, and to curtail certain private sector labor and management practices.

Refuses To Bargain

The act of rejecting or declining to engage in negotiation processes, typically in labor contexts.