When people play the "ultimatum game," in which one person gets to decide how to split a sum of money by offering a share to another person and neither gets anything if the second person rejects the offer, the result is often that the first person offers:
A. the full amount, and the second person accepts this offer.
B. something close to 50-50, but the second person rejects this offer.
C. something close to 50-50, and the second person accepts this offer.
D. one cent, and the second person accepts this offer.
Answer: C
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If the monopoly illustrated in the figure above could engage in perfect price discrimination, then it would sell
A) 30 tickets. B) 50 tickets. C) 60 tickets. D) 100 tickets.
In the long run, perfectly competitive firms achieve:
A) allocative and productive efficiency. B) allocative efficiency, but not productive efficiency. C) productive efficiency, but not allocative efficiency. D) neither allocative nor productive efficiency
Waldo buys only two items, pretzels and ham sandwiches. Waldo has $24 in income, pretzels cost $0.60 per bag and ham sandwiches cost $2.40 each. Which of the following statements is TRUE for the information given above?
A) Waldo's real income expressed in terms of pretzels is 40 bags of pretzels. B) Waldo's real income expressed in terms of ham sandwiches is 10 ham sandwiches. C) The relative price of a ham sandwich in terms of pretzels is 4 bags of pretzels per ham sandwich. D) All of the above answers are correct.
Proponents of a command economy argue that it promotes:
A. efficiency. B. equity. C. consumer sovereignty. D. economic growth.