An ultimatum game:
A. is a repeated game.
B. is a simultaneous move game.
C. is when one player makes an offer and the other has to accept or reject.
D. is a realistic way of modeling union negotiations.
C. is when one player makes an offer and the other has to accept or reject.
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Refer to the production possibility graph above. Assume that the economy is in equilibrium at point e. If a war reduces the country's capital stock by 40%, the new equilibrium is most likely to be
A) point b. B) point h. C) point f. D) point d. E) point e.
The idea of the invisible hand was introduced by
A. Wassily Leontief. B. Adam Smith. C. Thomas Jefferson. D. Mountifort Longfield.
If oligopolistic firms successfully cooperate with each other, _____
a. they may act like a monopoly and increase their prices b. they may act like a monopoly and increase their output c. they may act like perfectly competitive firms and earn normal profits d. they may act like a monopolistic firm and earn economic profits
Will is risk averse and has $1,000 with which to make a financial investment. He has three options. Option A is a risk-free government bond that pays 5 percent interest each year for two years. Option B is a low-risk stock that analysts expect to be worth about $1,102.50 in two years. Option C is a high-risk stock that is expected to be worth about $1,200 in four years. Will should choose
a. option A. b. option B. c. option C. d. either option A or option B because Will is indifferent between those two options and they are superior to option C.