Conventional economic theory suggests that in the ultimatum game, the player proposing a split of $50 will propose that she get $49 and that the other player get $1 . By the same reasoning, if the amount to be split is $1000, the player proposing the split will propose that she gets
a. $500 and that the other player gets $500.
b. $998 and that the other player gets $2.
c. $999 and that the other player gets $1.
d. $1000 and that the other player gets nothing.
c
Economics
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The demand for a product is more inelastic
a. When it has many close substitutes b. In the long-run c. When it has many complements d. None of the above
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In formulating fiscal policy it is necessary to specify the amount of the desired AD shift.
Answer the following statement true (T) or false (F)
Economics