Conventional economic theory assumes that people
a. care a great deal about fairness.
b. are inconsistent over time in their decisionmaking.
c. are rational.
d. are satisficers.
c
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What is the distribution of the world's population between the developed nations and developing nations? What is the distribution of income between these two groups and their consumption as a percentage of world income?
What will be an ideal response?
In the ultimatum game, allocators usually offer recipients at least a 40 percent share of the money, and recipients almost always reject offers of less than a 10 percent share
Which of the following does not explain why allocators offer recipients a relatively generous share and why recipients reject meager offers? A) Some people are careful not to engage in economic behavior that might offend and alienate others. B) People can and often do reject offers that offend their sense of fairness even if doing so means taking a monetary loss. C) Allocators can count on recipients to ignore all considerations except financial benefit. D) Fear of arousing outrage and abhorrence could influence economic decisions.