In the ultimatum game, one reason players don't choose the rational offer is
A) that there are too many possible outcomes to reasonably consider.
B) they are worse off by taking the offer.
C) they prefer to sacrifice to punish "unfair" behavior.
D) that it is not a Nash equilibrium.
C
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Labor standards in trade are typically opposed by most developing countries who believe that they will be used
A) to further neo-imperialist colonial exploitation. B) to charge these countries with crimes against child-labor standards at the Hague. C) as a protectionist tool by import-competing producers in industrial countries. D) as a means of spreading U.S. Corporate Values and destroying local cultures. E) to hinder investment in foreign-based multinational corporations.
What part of federal government spending has grown the most rapidly in recent years?
a. national defense b. welfare c. interest on the national debt d. social security and Medicare e. all other forms of federal government spending
The accounting profits for a firm are 20% of output, and the opportunity cost of financial capital is 8% of output. Given this information, what are the firm’s economic profits?
a. 6% of output b. 10% of output c. 12% of output d. 8% of output
Changes in demand will often be met with changes in output rather than changes in prices because of formal and informal contracts.
Answer the following statement true (T) or false (F)