In the ultimatum game, what split would be rational for both the person proposing the split and the person who must accept or reject the split ?

Related Mcqs:

1. A rational person does not act unless ?

   A. the action is ethical
   B. The action produces marginal costs that exceed marginal benefits.
   C. The action produces marginal benefits that exceed marginal costs.
   D. The action makes money for the person.

2. If in Pakistan real GDP/person in 2004 is Rs18,073 and real GDP/person is 2005 is Rs18,635 What is the growth rate of real output per person over this period ?

   A. 3.1 percent
   B. 3.0 percent
   C. 18.6 percent
   D. 18.0 percent

3. If marginal benefit is greater than marginal cost, a rational choice involves ?

   A. no more of the activity.
   B. less of the activity
   C. more of the activity
   D. more or less, depending on the benefits of other activities

4. If people have rational expectations a monetary policy contraction that is announced and is credible could ?

   A. reduce inflation with little or no increase in unemployment
   B. Increase inflation but would decrease unemployment by an unusually large amount
   C. increase inflation with little or no decrease in unemployment
   D. reduce inflation but it would increase unemployment by an unusually large amount

5. If buyers are rational and there is no market failure ?

   A. free market solutions are efficient
   B. free market solutions maximize total surplus
   C. all of these answers
   D. free market solutions are equitable
   E. free market solutions are efficient and free market solutions maximize total surplus

6. The rational-expectation hypothesis suggests that the forecasts that people make concerning future inflation rates ?

   A. consistently overestimate the actual rate of inflation in the future.
   B. are always correct
   C. consistently underestimate the actual rate of inflation in the future
   D. are correct on average, but are subject to errors that are distributed randomly

7. People are said to have rational expectations if they ?

   A. assume that this year’s inflation rate will be the same as last year’s inflation rate
   B. merely guess at the inflation rate.
   C. assume that this year’s inflation rate will be equal to the average inflation rate over the past 10 years
   D. Use all available information in forming their expectations.

8. In the context of equities What is called a firm with two divisions that may split into two companies and issue original shareholders two shares for every old share they have ?

   A. Spreadsheet
   B. Splinter
   C. Family growth
   D. Butterfly

9. If employees cannot accept a job because of the costs of moving this is known as ?

   A. Occupational immobility
   B. Cyclical unemployment
   C. Structural immobility
   D. Geographical immobility

10. In the events of an increase in the international price of oil that encouraged the central bank to accept lower real interest rates, inflation would most likely ?

    A. fall
    B. increase
    C. remain the same
    D. fluctuates