TriviaBug | Quiz on Economic Paradoxes

Economic Paradoxes

	Explaination	Name of the Paradox
Money is not the best thing in the world? Well, it surely beats the second best. So what can be paradoxical here? Click here to flip columns.
14.	Can increasing the price of bread make poor people eat more of it?	Giffen paradox
13.	With capacity constraints, there may not be an equilibrium.	Edgeworth paradox
12.	Worker productivity may go down, despite technological improvements...	Productivity paradox, Solow computer paradox
11.	Why were interest rates and prices correlated?	Gibson's paradox
10.	Why is water cheaper than diamonds, when humans need water to survive, not diamonds?	Diamond-water paradox
9.	It is possible to play two losing games alternately to eventually win.	Parrondo's paradox
8.	If everyone saves more money during times of recession, then aggregate demand will fall and will in turn lower total savings in the population.	Paradox of thrift
7.	People will only offer a modest fee for a reward of infinite value.	St. Petersburg paradox
6.	Increases in efficiency lead to even larger increases in demand.	Jevons paradox
5.	A group of people often has to decide against each member's own personal interests or views.	Abilene paradox
4.	People exhibit ambiguity aversion (as distinct from risk aversion), in contradiction with expected utility theory.	Ellsberg paradox
3.	A change in a possible outcome which is shared by different alternatives affects people's choices among those alternatives, in contradiction with expected utility theory.	Allais paradox
2.	Some countries export labor-intensive commodities and import capital-intensive commodities, in contradiction with Heckscher-Ohlin theory.	Leontief paradox
1.	Two players reaching a state of Nash equilibrium both find themselves with no profits.	Bertrand paradox
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