If a Proposer and a Responder are asked to split $100 in the ultimatum bargaining game, standard economic theory would predict that the Responder should:
A. reject any amount over $50.
B. accept any amount offered by the Proposer.
C. only accept an offer for exactly $50.
D. reject any amount less than $50.
Answer: B
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Gross Domestic Product in 2017 is more than five times larger than it was in 1960 but it is important to note that
A. none of the growth represented additional output of goods and services. B. this measurement of output fails to account for any of the effects of inflation. C. the population also grew substantially over the same time period. D. available graphs of output are unable to display such growth.
A movement upward along an upward-sloping Engel curve corresponds to
A) upward-sloping indifference curves. B) crossing indifference curves. C) a rotation in the budget constraint. D) a parallel shift in the budget constraint.
The deadweight loss from a tax:
A. is zero when demand is perfectly elastic. B. is zero when supply is perfectly elastic. C. is zero when demand is perfectly inelastic. D. is never zero.
The need to make choices is most closely related to the economic concept of
A) opportunity cost. B) efficiency. C) inefficiency. D) utility. E) disutility.