Question 26 The members of some Central Bank have different numbers of votes: Freedonia 13, Republic 8, Satrapia 4, Anarchia 3, and vote using a simple majority. Their preferences are aligned along the dimension of being more hawkish or more dovish with respect to their joint monetary policy. From this information only, you can infer that (many answers may be correct): O Freedonia and Republic form a minimal winning coalition O The minimum weight winning coalition has 13 votes O There is no minimal size winning coalition with two states O Freedonia and Anarchia form a minimal connected winning coalition O Freedonia and Anarchia torm a minimal range winning coalition O Satrapia is not a member of any minimal connected winning coalition O There are four minimum winning coalitions O Satrapia and Anarchia do not form a minimal winning coalition

There is a bar on Off‐Main Street called the Rock‐n‐Roll Bar. All the people that go to that bar like to listen to rock‐n‐roll music, and they love live bands. If the bar owner brings bands in to play music on a Saturday night, she will make a lot of money. However there are tenants in this building who get annoyed by the loud music. The benefits/costs to the owner/tenants of having zero, one, two or three bands on a Saturday night are listed below.   Assume the bar owner has the right to hire as many bands as she likes. Iftransaction costs were $90, split between the bar owner and the tenants, how manybands would play? What would social welfare be? A. Three bands would play and social welfare would be ‐100.B. Two bands would play and social welfare would be 75.C. Two bands would play and social welfare would be ‐15.D. No bands would play and social welfare would be 0.E. Three bands would play and social welfare would be ‐190

There is a bar on Off‐Main Street called the Rock‐n‐Roll Bar. All the people that go to that bar like to listen to rock‐n‐roll music, and they love live bands. If the bar owner brings bands in to play music on a Saturday night, she will make a lot of money. However there are tenants in this building who get annoyed by the loud music. The benefits/costs to the owner/tenants of having zero, one, two or three bands on a Saturday night are listed below. If the tenants have the right to be free of loud music enforced through aproperty rule, how many bands will play in Rock‐n‐Roll Bar on a Saturday night? A. ZeroB. OneC. TwoD. ThreeE. It depends on transaction costs