In a Round of the Ultimatum Game, Player 1 Decides

question 34

Multiple Choice

In a round of the Ultimatum Game, player 1 decides to split $20 by keeping $16 and offering $4 to player 2. Player 2 is most likely to

• A) free ride.
• B) accept the offer.
• C) reject the offer.
• D) accept part of the offer.

---

Definitions:

Income Earners

Individuals or entities that receive compensation for providing goods or services, or through investments.

Annual Family Income

The total amount of money earned by members of a family in one year, including wages, salaries, benefits, and other income sources.

Income Distribution

The way in which a nation’s total GDP is spread amongst its population, affecting the economic equality or disparity in a society.

Equitable Distribution

A principle aiming for a fair allocation of resources and wealth across society. It doesn't necessarily mean equal distribution but focuses on ensuring individuals have fair access to resources and opportunities.