Robert and Neal Are Playing the Ultimatum Game, Starting with $100

question 203

Multiple Choice

Robert and Neal are playing the ultimatum game, starting with $100. Based on the coin toss, Robert is the player to propose a division of the $100. If Robert acts as economic theory assumes and Neal acts as experimental evidence shows, Neal will

• A)accept Robert's proposal of keeping $99 and offering Neal $1.
• B)accept Robert's proposal of keeping $60 and offering Neal $40.
• C)reject Robert's proposal of keeping $99 and offering Neal $1.
• D)reject Robert's proposal of keeping $60 and offering Neal $40.

---

Definitions:

Infant Mortality Rate

The statistical measure of deaths of infants under one year old per 1,000 live births, indicating health and social conditions.

Life Expectancy

The average number of years an individual or population is expected to live, based on statistical measures considering current death rates.

Infant Mortality Rate

The rate at which infants under one year of age die in a given population per 1,000 live births in a year.

Crude Birth Rate

The number of live births per 1,000 people in a population in a given year.