When does the second player in an ultimatum game reject the offer made by the first player?
What will be an ideal response?
In an ultimatum game, the first player or the proposer is asked to offer a percentage of money to the second player or responder. The responder can accept or reject the offer. If he accepts the offer, the money will get split in the decided proportion, but if the responder rejects the offer, neither of them will get anything. The proposer usually makes the lowest possible offer to the responder, thinking that the responder will accept the offer because some money is better than no money. However, if the responder values fairness to money, he will reject the proposer's offer, asking for an equal share.
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Why do some people think that the productivity slowdown since 1973 is just a return to normalcy after fast productivity growth during the previous 25 years?
A) Productivity growth of the previous 25 years was abnormally low. B) The Great Depression and World War II had prevented technological opportunities from being exploited. C) The United States is the only country to face the slowdown, due to poor regulatory decisions. D) The United States has allowed countries like Japan to steal its technological breakthroughs.
Union membership declined during the 1920s due to:
a. failure of a number of strikes. b. increase in real wages left the labor force satisfied. c. firms' use of "yellow-dog" contracts. d. poor union leadership. e. All of the above.
If money wages increase, the most likely result is a(n)
a. increase in aggregate supply. b. decrease in aggregate supply. c. steeper aggregate supply curve. d. flatter aggregate supply curve.
In an open economy, the demand for loanable funds comes from both domestic investment and net capital outflow
a. True b. False Indicate whether the statement is true or false