An ultimatum game is:
A. the only game played by unions in reality.
B. one in which one player makes an offer and the other player has the simple choice of whether to accept or reject.
C. a repeated sequential game.
D. one in which one player makes an offer and the other player has the choice of whether to accept or offer a counteroffer.
Answer: B
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The New York Stock Exchange handles only about 10 percent of all stock market transactions in the United States.
Answer the following statement true (T) or false (F)
Where does the World Bank get its funds?
A) from selling internal reports to the public B) from tariffs collected on goods traded internationally C) from governments of the wealthiest nations and from private financial markets D) from seizing dead capital in developing nations and selling it at auction
Suppose a buyer and a seller agree to split the cost of hiring an interpreter who charges $4 per transaction. The seller's opportunity cost is $35, while the buyer values the good at $45 . If the gains from this transaction are split equally between the buyer and the seller, how much will each gain from this transaction?
a. $10 b. $4 c. $3 d. $5
Tammy installed a set of wind chimes in her backyard. She enjoys listening to the musical tones when the breeze hits them. Her neighbor Steven also enjoys the chimes, but her other neighbor Sally hates the constant noise. Tammy's wind chimes
a. create a negative externality for Steven and a positive externality for Sally b. are not related to the issue of property rights since all parties are homeowners c. are an example of an efficient market since the benefits to one party are balanced by costs to another party d. are a public good because all three parties can hear the wind chimes e. create a positive externality for Steven and a negative externality for Sally