Suppose Gina and Henry play two rounds of the ultimatum game. In the first round they play for $10; in the second round they play for $1,000. In the first round Gina suggests an 80/20 split ($8 to Gina, $2 to Henry), but Henry quickly rejects the offer
as unfair. If in the second round Gina offers the same split ($800 to Gina, $200 to Henry), research by behavioral economists suggests that Henry will:
A. accept the offer because the dollar amount he would forgo by rejecting is substantial.
B. counteroffer with a more even split.
C. weigh the offer much more carefully because of the dollar amounts involved but ultimately
reject the offer.
D. exhibit a stronger negative reaction than the first time and ultimately reject the offer.
Answer: D
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a. True b. False
?Experimental data are easy to obtain in the social sciences.
Answer the following statement true (T) or false (F)
Sally is a U.S. citizen who works for an Italian company at the branch office located in Tulsa, Oklahoma. Sally's work will contribute toward:
A. U.S. GDP since Sally's a citizen. B. Italian GDP since she's working for an Italian firm. C. U.S. GDP since the location of her office is in the U.S. D. both the U.S. and Italy's GDP.
Which of the following would increase U.S. GDP?
a. Ford Motor Company begins to produce and sell cars in China.
b. Mercedes-Benz begins to produce and sell cars in Mississippi.
c. An American investor buys 100 shares of Ford stock.
d. An American investor purchases 100 shares of Mercedes-Benz stock.