In the ultimatum game, allocators usually offer recipients at least a 40 percent share of the money, and recipients almost always reject offers of less than a 10 percent share
Which of the following does not explain why allocators offer recipients a relatively generous share and why recipients reject meager offers?
A) Some people are careful not to engage in economic behavior that might offend and alienate others.
B) People can and often do reject offers that offend their sense of fairness even if doing so means taking a monetary loss.
C) Allocators can count on recipients to ignore all considerations except financial benefit.
D) Fear of arousing outrage and abhorrence could influence economic decisions.
C
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
One area of labor issues that the labor side agreement to NAFTA does not open to foreign consultation or investigation is
A) the use of child labor. B) worker exposure to unsafe conditions. C) minimum wages. D) worker's rights to organize. E) worker exposure to toxic hazards.
As the number of sellers in an oligopoly becomes very large,
a. the quantity of output approaches the socially efficient quantity. b. the price approaches marginal cost. c. the price effect is diminished. d. All of the above are correct.
“Supply creates its own demand” is an expression of
a. the quantity theory of money. b. monetarism. c. Say’s Law. d. the Keynesian critique of classical economics.