The Ultimatum Game Reveals That

question 52

Multiple Choice

The ultimatum game reveals that

• A) it does not make sense to try to maximize profits.
• B) people may have an innate sense of fairness that economic theory does not capture.
• C) offering someone a wildly unfair outcome is usually OK since people tend to make decisions using a "something is better than nothing" philosophy.
• D) Both a and B

---

Definitions:

Ability to Meet Obligations

A financial assessment of whether a company or individual has the resources necessary to pay off their debts as they come due.

Return on Assets

A profitability ratio that measures how efficiently a company is using its assets to generate earnings.

Direct Method

In cash flow reporting, a method that shows the specific sources and uses of cash, categorizing cash flows into operating, investing, and financing activities.

Net Cash Provided

The amount of cash generated by a company’s operations after accounting for all cash inflows and outflows.