Standard game theory predicts a solution to the ultimatum game that is rarely observed when people actually play the game
The key reason that behavioral economists believe the predicted and observed outcomes differ is because people account for ________ of the outcome when making decisions. A) loss aversion
B) fairness
C) efficiency
D) utility
B
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Which of the following always decreases when output increases?
A) total fixed cost B) marginal cost C) average variable cost D) average fixed cost E) total cost
Rayburn Reed is a highly talented photographer. He has chosen to specialize in photography because of all of the following except
A) for him, this is the most lucrative way to purchase the products that he wants to consume. B) his photographs are highly esteemed by art lovers who are willing to pay very high prices. C) he obviously has a comparative advantage in photography. D) his opportunity cost of pursuing another career is very low.