According to Information Provided in the Textbook, the Results of the "Ultimatum

question 61

Multiple Choice

According to information provided in the textbook, the results of the "ultimatum game" reveal that people

• A)always behave irrationally.
• B)tend to be more concerned with their relative income position in a group than with their absolute position in the group.
• C)tend to be more concerned with their absolute position in a group than with their relative position in the group.
• D)always behave rationally.

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Definitions:

Substitution

The economic principle that as the price of a good or service increases, consumers are likely to replace it with a cheaper alternative.

Consumer

An individual or group that purchases goods and services for personal use.

Indifference Curves

A graphical representation showing combinations of two goods that give a consumer equal satisfaction and utility, reflecting preferences.

Perfect Substitutes

Goods or services that can be used in exactly the same way, such that the consumer is indifferent between one and another.