In the ultimatum game, when the allocator and the recipient care about fairness, how is the distribution of $20.00 affected?
a. Allocators receive everything, and recipients receive nothing.
b. Recipients usually reject offers of less than a 10 percent share.
c. Allocators usually offer recipients a very small share.
d. Allocators and recipients always end up sharing the $20.00 equally.
Ans: b. Recipients usually reject offers of less than a 10 percent share.
You might also like to view...
If the government uses fiscal policy to close a recessionary gap,
A) taxes must be cut by more than the gap because of the tax multiplier. B) government expenditure must be increased by more than the gap because of the government expenditure multiplier. C) taxes must be raised by more than the gap because of the tax multiplier. D) government expenditure can be increased by less than the gap because of the government expenditure multiplier. E) taxes can be raised by less than the gap because of the tax multiplier.
Refer to the above figure. A long-run equilibrium in monopolistic competition is pictured by
A) Panel A. B) Panel B. C) Panel C. D) Panel D.
The price where quantity demanded is equal to quantity supplied is known as
a. equilibrium price. b. equilibrium quantity. c. equilibrium rate. d. equilibrium level.
If the economy is not in a long-run equilibrium and other things are equal, then prices will eventually adjust to bring the economy to a long-run equilibrium.
Answer the following statement true (T) or false (F)