An Ultimatum Game Is

question 101

Multiple Choice

An ultimatum game is:

• A) one in which one player makes an offer and the other player has the simple choice of whether to accept or reject.
• B) one in which one player makes an offer and the other player has the choice of whether to accept or offer a counteroffer.
• C) a repeated sequential game.
• D) the only game played by unions in reality.

---

Definitions:

Productive Capacity

The maximum output a firm or economy can produce with its current level of resources and technology.

Efficient

The optimal use of resources to achieve the best possible outcome or output with minimal waste or effort.

Reallocating Resources

The process of distributing resources, such as capital and labor, in a different manner to increase efficiency or achieve a specific objective.

Individual Behavior

The actions or reactions of an individual in response to external or internal stimuli.