Consider the Following Scenario to Answer the Questions That Follow

question 24

Multiple Choice

Consider the following scenario to answer the questions that follow.
Sarah and Laura are playing an ultimatum game where Laura is given an eight-slice pizza and asked to propose a way of splitting it with Sarah. When Sarah learns Laura's proposal, Sarah chooses whether to accept or reject the split. If Sarah accepts the split, both players receive the slices of pizza according to Laura's split proposal. If Sarah rejects the split, both players receive nothing. This game will be played only once, so Laura does not have to worry about reciprocity when making her choice. Assume that both players enjoy pizza and each would strictly prefer to eat more pizza than less.
-The standard economic model predicts that Laura will offer Sarah ________ slice(s) and Sarah ________ accept the offer.

• A) one; will
• B) one; will not
• C) four; will
• D) four; will not
• E) seven; will

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