The self-interest model predicts that the outcome of the "ultimatum bargaining game" in which the allocator starts with $20 is that
A. the allocator will offer the receiver $0.01 and will propose to keep $19.99 for himself.
B. the receiver will always reject the allocator's proposal.
C. the allocator will offer the receiver $10 and keep $10 for himself.
D. the allocator will always keep the full $20.
Answer: C
You might also like to view...
Amanda buys a ruby for $330 for which she was willing to pay $340. The minimum acceptable price to the seller, Tony, was $140. Tony experiences a
A. consumer surplus of $670 and Amanda experiences a producer surplus of $470. B. producer surplus of $190 and Amanda experiences a consumer surplus of $10. C. consumer surplus of $10 and Amanda experiences a producer surplus of $190. D. producer surplus of $470 and Amanda experiences a consumer surplus of $670.
Changes to the price level affect consumers’ purchasing power; therefore, it will most likely impact their
A. purchases on credit. B. remittances. C. wealth. D. disposable income.
Changes in government spending or taxes designed to stimulate the economy are examples of
a. fiscal policy b. monetary policy c. supply management policy d. classical policy e. regulatory policy
Economists who believe there is a short-run trade-off between inflation and unemployment attribute it to the ______.
a. complete flexibility of prices b. complete flexibility of wages c. slow adjustment of input prices d. fast adjustment of input prices