In an ultimatum game where the payoff totals $100 and is split in $1 increments, the rational amount for the proposer to offer and the responder to take is
A) $0.
B) $1.
C) $50.
D) $100.
B
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Draw a scatter diagram of the growth rate and the unemployment rate. Describe the relationship
What will be an ideal response?
A Lorenz curve that is perfectly straight indicates
A) that society is very rich. B) that a small portion of the population accounts for most of the income. C) that a large portion of the population accounts for most of the income. D) complete income equality.
One way people cope with uncertainty about the future is they:
A. avoid risks when it is reasonable to do so. B. only select risky alternatives if the expected value is twice as high as for a safe alternative. C. buy insurance. D. All of these are ways individuals cope with uncertainty.
If prices have risen 220 percent since the base year, the current level of the CPI is
A. 20. B. 120. C. 220. D. 320.