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D Question 27 2 pts Q6: Which of the following is the best example of the \"back

ID: 1155445 • Letter: D

Question

D Question 27 2 pts Q6: Which of the following is the best example of the "backward bending" labor supply curve O As his eamings on the PCGA tour have increased. Tiger Woods has charitable foundation arted a ?AsPGA tournament purses have increased Tiger Woods has played fewerton anent As tax laws have changed, Phil Mickelson plays fewer tournaments overveas As tax laws have changed, Phil Mickelson up nesidence in Florida Background information for Q7 Two cyclists of equal ability are competing in the Tour de Chance for a prize of $10000 A banned substance is available. If one athlete takes the substance and the other does not the one who takes it wins the prize. If both or neither takes the substance, they tie and split the prize. Taking the substance, however imposes health risks as well as the possibility of testing positive and being banned from the sport for life. Assume these costs can be quantifhied and have a combined value of X dollars D Question 28 1.5 pts If X equals $2500,the Nash equilibrium for this game would be Both players take the banned substance O Neither player takes the banned substance O One player takes the banned substance and No Nash eaulbrium eists in this game other does not 2500 D Question 29 1.5 pts

Explanation / Answer

27 b) As PGA turnaround purses have increased; Tiger Woods has played fewer tournaments in any given year

Workers substitute leisure for work. This reduces the availability of labour in the market, and, influences the wage rate.

28 c) One takes while the other does not

In this case, one can become better off if one knows about the other person's decision on taking the banned substance or not;; this is true for both taking the drug, or, neither taking the drug

Equilibrium is at 7500,0 or 0, 7500

29 d) No Nash Equilibrium exists at x = 7500

The winner will get 2500. Without taking the drugs, each of them gets 5000

30 a) Player 1 takes while the player 2 does not

Winnings: 7500, 2500; rather than 5000, 5000

31 b) Equity in the distribution of Prize money

Tie in case both, or, neither take the drug