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Directions: Apply the Knowledge You Have Gained from Chapter 8

question 4

Multiple Choice

Directions: Apply the knowledge you have gained from Chapter 8 to select the best answer to the questions about the following reading passage.
Riding up the mountain trail, my thighs ached and my lungs burned, but I couldn't be happier. Fifty feet in front of me pedaled my brother, Keith, fresh off his tour with the Marines. This mountain biking adventure was his idea. The green, forest-lined trail was rugged, with sharp turns and steep descents. At one point we hit a patch of fog and I lost sight of Keith. It felt as if we were riding through clouds. The ghostly air was damp and smelled like rain. I slowed down and called for my brother, 'Are you still up there?' 'Would I be anywhere else?' he yelled back. When the fog disappeared, we stopped for a breather on a ridge that overlooked a vast valley. A sea of pointy evergreens stretched for miles, ending near the peak of a distant mountain. While I snacked on a peanut butter granola bar, Keith glanced over at me and said, 'This is fun, isn't it?' 'It's good having you back, man,' I responded. With that, we hopped on our bikes.
The phrase lungs burned is

Definitions:

Dictator Game

A behavioral economics experiment that tests how individuals behave when they hold all the power over allocating resources.

Ultimatum Game

A game in economic experiments where one player proposes a division of resources, and the other can accept or reject it.

Dictator/Proposer

In game theory, a player who has the power to propose the division of a resource or goods, often in a bargaining or allocation scenario.

Behavioral Economists

Study the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions and how those decisions vary from those implied by classical economic theory.