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Suppose Faith and Mickey are playing both dictator and ultimatum games. Faith is the dictator/proposer and has $20 to allocate. Based on repeated experiments of the dictator and ultimatum games, what payouts to Mickey would be most consistent with the findings of behavioral economists? Multiple Choice • Mickey receives $0 from the dictator game and $2 from the ultimatum game. • Mickey receives $10 from the dictator game and $8 from the ultimatum game. • Mickey receives $10 from the dictator game and $10 from the ultimatum game. • Mickey receives $8 from the dictator game and $10 from the ultimatum game.
Assume that a consumer purchases a combination of products Y and Z and that the MUy/Py = 8 and MUz/Pz = 5. To maximize utility, without spending more money, the consumer should Multiple Choice • purchase less of Y and more of Z. • purchase more of Y and less of Z. • purchase more of both Y and Z. • make no change in the quantities Y and Z.
The table shows an indifference schedule for several combinations of X and Y. Combination Quantity of X Quantity of Y a 20 1 b 16 2 c 12 3 d 10 4 e 9 5 Approximately how much of Y is the consumer willing to give up to obtain the twelfth unit of X? Multiple Choice • 2 • 1/2 • 4 • 1/4
A child is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies 50 cents each. The marginal utilities derived from each product are
