AREC 202 (Kroll) Final Exam Study Guide Questions and Answers 100% Solved

AREC 202 (Kroll) Final Exam Study Guide Questions and Answers 100% Solved What insight(s) did we get from the classroom clicker experiment where students had to choose how many points to contribute to a class account? Some people were willing to give more in order to acquire a higher point total, but other would keep all of their points. The people who decided to keep all of their points ended up better in the long-run. What insight(s) did we get from the Moblab experiment on asymmetric information (the Lemons Market experiment) The seller knows more about the value of the car. The buyer is losing money. Moreover, if this process is repeated high-price purchases will decrease. High-quality goods are being pushed out by low-quality goods. What insight(s) did we get from the Moblab experiment on externalities? Two supply curves. People are not taking externalities into account when they make trades. When a tax was imposed, people started to take it into account. With a tax people cared (increased the price), but without a tax they didn't take externalities into account. The tax puts the market at the equilibrium and market the same.