If the receiver in the "ultimate bargaining game" cares not just about his final wealth level but also about fairness,
A. the allocator will make a one-sided offer.
B. the receiver will reject a one-sided proposal.
C. the receiver will always receive the full $20.
D. the receiver will accept a one-sided offer.
Answer: B
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Differences in the stock of physical capital between nations are an example of a(n):
A) implicit cause of prosperity. B) proximate cause of prosperity. C) fundamental cause of prosperity. D) explicit cause of prosperity.
A considerable advantage that richer countries have over poorer ones is exemplified by the fact that
A) richer countries do not have to denominate their foreign debts in their own currencies. B) richer countries have the ability to denominate their foreign debts in foreign currencies. C) when demand falls for a poorer country's goods, this leads to a significant wealth transfer from foreigners to the poorer country, a kind of international insurance payment. D) richer countries have the ability to denominate their foreign debts in their own currencies. E) richer countries can extract trade advantages by using military power.