Experiments show that when real people play the ultimatum game, starting with $100,
a. Player A usually proposes giving Player B more than $50.
b. Player B usually accepts Player A's proposal if Player A proposes giving Player B $30 or $40.
c. players show themselves to be rational wealth-maximizers.
d. Player B will usually demand an even split.
b
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The monetary transmission mechanism that assumes that money supply growth stimulates the economy primarily by encouraging investment is
A) the classical transmission mechanism. B) pre-Keynesian transmission mechanism. C) the interest-rate-based transmission mechanism. D) the post-Keynesian transmission mechanism.
Which of the following is not an explicit cost?
a. salaries b. sales taxes c. the cost of utilities, such as gas and electricity d. insurance premiums e. the value of a firm owner's time
Perfectly competitive markets are characterized by: a. rivalry in product design
b. competition in terms of product quality. c. attempts by sellers to outdo one another with good service. d. none of the above.
An economic theory: a. should be as detailed as possible in order to model the complexity of an economy
b. is an abstraction from reality. c. is only useful if it rests on realistic assumptions. d. is unrealistic and therefore of dubious usefulness in explaining what occurs in a complex economy.