-Which of the Following Is an Assumption Used When Drawing

question 4

Multiple Choice

-Which of the following is an assumption used when drawing a production possibilities frontier? i. Human wants and desires are limited to what is available.
Ii) Only two goods are considered.
Iii) The level of technology is fixed and unchanging.

• A) i only
• B) ii only
• C) i and iii
• D) ii and iii
• E) i, ii, and iii

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Definitions:

Ultimatum Game

A game in economic experiments where two players decide how to divide a sum of money, with one player proposing the split and the other accepting or rejecting it.

Behavioral Economists

Researchers and theorists who study how psychological, cognitive, emotional, cultural, and social factors affect economic decisions and outcomes.

System 1

Refers to the fast, instinctive, and emotional way of thinking in Daniel Kahneman's dual-process theory of the mind, contrasting with the slower, more logical System 2.

Ultimatum Game

A game in economic experiments where one party proposes how to divide a sum of money with another party, who can accept or reject the proposal.