In a dictator game, player A must divide $100 between player A and player B. In this game, player B does not have the opportunity to reject an offer — he or she goes home with whatever player A offers. Experiments have observed that when player A splits the $100, he or she consistently offers over $10 to player B. Which of the following comments fits best
a. Although player A is acting as economic theory usually assumes, he or she makes such offers because they seem more fair.
b. Although player A is acting as economic theory usually assumes, he or she makes such offers although they are not fair.
c. Although player A is not acting as economic theory usually assumes, he or she makes such offers because they seem more fair.
d. Although player A is not acting as economic theory usually assumes, he or she makes such offers because they are not fair.
c
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Because handling charges are relatively fixed, the interest rate on a loan generally
A) increases with the size of the loan. B) decreases with the size of the loan. C) is constant regardless of the size of the loan. D) is unrelated to the size of the loan.
A firm wishes to shut down an office and fire 100 employees. The company will save $3000 per month per employee. It is estimated that each employee contributes $4,100 to the company. The firm rents office space for this group of employees at $1500 . What should the company do?
a. Fire the employees and save $1500 on rent b. Not fire the employees keeping them generates a profit of $1100 per employee c. Not fire the employees since keeping them generates a profit of $1085 per employee d. None of the above
The best description of US economic growth during the 1800s is:
a. The annual growth rate for the 20 years preceding the Civil War was about the same as the annual growth rate from 1870-1899 while the growth rate during the Civil War was higher than either period. b. The annual growth rate for the 20 years preceding the Civil War was lower than the annual growth rate from 1870-1899 c. The annual growth rate for the 20 years preceding the Civil War was greater than the annual growth rate from 1870-1899
If government spending increases, which of the following would be most likely in the short and in the long run? (Both comparisons are with regard to the original price level/output combination.)
a. Short-run increases in the price level, no change in output; long-run increases in output and in the price level b. Short-run increases in output and in the price level; long-run increase in output, decrease in the price level c. Short-run decreases in output and in the price level; long-run increase in the price level, no change in output d. Short-run increases in output and in the price level; long-run increase in the price level, no change in output e. Short-run decreases in output and in the price level; long-run decreases in output and in the price level