Consider the same ultimatum game as in the previous question but consider some new preferences reflecting a desire for fairness. In particular, now assume players get 1 util per dollar earned but lose 1/4 util for the absolute difference between their monetary payoffs. Which of the following is an offer that arises in a subgame-perfect equilibrium with these new preferences?
a. 1.
b. 2.
c. 4.
d. 5.
b
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The above table shows production points on Sweet-Tooth Land's production possibilities frontier. Which of the following statements is TRUE?
A) Producing 0 chocolate bars and 100 cans of cola is both attainable and efficient. B) Producing 20 chocolate bars and 80 cans of cola is attainable, but inefficient. C) Producing 30 chocolate bars and 38 cans of cola is only attainable with an increase in technology. D) Producing 40 chocolate bars and 0 cans of cola is unattainable and inefficient.
In the base year:
A. nominal and real GDP are equal by definition. B. nominal GDP is always larger than real GDP because prices are held constant. C. real GDP is always larger than nominal GDP because prices are held constant. D. real GDP will only be larger than nominal GDP if prices increased in the base year.
According to behavioral economists, someone suffering from myopia is most likely to:
A. spend too little on present consumption and save more than is necessary for the future. B. vote only for economic policies that serve his or her short- and long-term interests. C. rely too much on System 2 of the brain. D. spend too much on present consumption and not save enough for the future.
Inflation can be defined as
A. a decrease in the purchasing power of money. B. no change in the purchasing power of money. C. an increase in real income. D. an increase in the purchasing power of money.