Welfare Economics-Social Choice, Game Theory and More [IEcoS (Economic Services) Economics Paper-1]: Questions 1 - 9 of 12

Choose Programs:

📹 Video Course 2024 (80 Lectures [30 hrs : 11 mins]): Offline Support

Rs. 180.00 -OR-

1 Month Validity (Multiple Devices)

Preview All LecturesDetails

🎓 Study Material (272 Notes): 2024-2025 Syllabus

Rs. 400.00 -OR-

3 Year Validity (Multiple Devices)

Topic-wise Notes & SampleDetails

🎯 239 Long Answer, 1 MCQs (& PYQs) with Full Explanations (2024-2025 Exam)

Rs. 700.00 -OR-

3 Year Validity (Multiple Devices)

CoverageDetailsSample Explanation

Help me Choose & Register (Watch Video) Already Subscribed?

Question 1

Appeared in Year: 2011

Describe in Detail Subjective▾

In game theory, comment on the terms ‘maxi-min’ and ‘mini-max’ .

Edit

Explanation

  • Maxi-min strategy is the conservative approach in which a player seeks to maximize the probability of minimum profit so that the degree of risk can be reduced. In this strategy, the player finds the minimum payoff in each strategy and among these chooses the one with the highest value (maximum) . For e. g. Payoff matrix of firm I and II are given a…

… (108 more words, 1 figure) …

Question 2

Appeared in Year: 2015

Describe in Detail Subjective▾

State and explain the Kaldor-Hicks compensation principle.

Edit

Explanation

  • Nicholas Kaldor was the first economist to give a welfare criterion based on compensation payments. According to Kaldor՚s welfare criterion, if a certain change in economic organization or policy makes some people better off and others worse off, then that change will increase social welfare if those who gain from the change would compensate the lo…

… (521 more words, 5 figures) …

Question 3

Appeared in Year: 2016

Describe in Detail Subjective▾

Distinguish between a cooperative and a non-cooperative game.

Edit

Explanation

A game is cooperative if the firm (i.e.. players in the game) can arrive at an enforceable or binding contract that permits them to adopt a strategy to maximize joint profits. Suppose making of a carpet costs Rs 1000 but the buyers value it at Rs 2000. Fixation of price between Rs 1000 and 2000 per carpet will yield profits.

  • In this case, two firms …

… (177 more words) …

Question 4

Appeared in Year: 2020

Describe in Detail Subjective▾

Explain the meaning of Nash equilibrium. How does it differ from an equilibrium in dominant strategy?

Edit

Explanation

Nash Equilibrium

Named after an American Mathematician and economist – John F. Nash (Nobel Prize winner in Economics in 1994) . It is a strategy for each player that is the best choice for each player given the equilibrium strategy of others. A game is in equilibrium if neither player has an incentive to change his or her choice, unless a change is …

… (327 more words, 1 table) …

Passage

Mohan is paid ₹ 8 if two coins turn both heads and ₹ 1 if two coins turn both tails. Ram is paid ₹ 3 when the two coins do not match.

Question 5 (1 of 2 Based on Passage)

Appeared in Year: 2020

Write in Short Short Answer▾

Write down the pay-ff matrix of the above problem.

Edit

Question 6 (2 of 2 Based on Passage)

Appeared in Year: 2020

Write in Short Short Answer▾

Whom do you consider in the better situation?

Edit

Question 7

Appeared in Year: 2021

Describe in Detail Subjective▾

Distinguish between pure strategies and mixed strategies of a game.

Edit

Explanation

Pure Strategy

  • A pure strategy is an unconditional, defined choice that a player makes in a situation or game.
  • For illustration, in the game of Rock-Paper-Scissors, if a player would choose to only play Rock for each and every independent trial, regardless the other player strategy, considering paper would be the players pure strategy.
  • The probability …

… (267 more equations) …

Question 8

Appeared in Year: 2020

Describe in Detail Subjective▾

Discuss social choice theory in economics. Distinguish between the views of Amartya Sen and Kenneth arrow in making choices for social welfare.

Edit

Explanation

Social Choice Theory

  • Social choice theory or social choice is a theoretical framework for analysis of combining individual opinions, preferences, interests, or welfares to reach a collective decision or social welfare in some sense. Whereas choice theory is concerned with individuals making choices based on their preferences, social choice theory is…

… (289 more words) …

Question 9

Appeared in Year: 2021

Describe in Detail Subjective▾

Distinguish between Egalitarian society, Utilitarian society, Market-oriented society and Rawlsian society.

Edit

Explanation

In egalitarian societies, all individuals in a society have equal rights and opportunity by birth. No discrimination would be made in terms of caste, religion, etc.

  • Such society are often referred as classless societies.
  • This type of system is not usable or applicable in today՚s modern world as it got formed from religions, race, money, etc.
  • For examp…

… (227 more words) …