Suppose That an Economics Professor Selects Two Students, Audrey and Michael

question 161

Multiple Choice

Suppose that an economics professor selects two students, Audrey and Michael, to participate in a classroom experiment. The professor gives Audrey twenty $1 bills. Audrey must pick an allocation of the twenty $1 bills to offer to Michael. If Michael accepts the allocation, each student keeps his or her portion of the money. If Michael rejects the allocation, the professor keeps the $20, and each student receives nothing. Audrey selects $19 for herself and $1 for Michael. Based on the studies of human decision making, which of the following statements is correct?

• A)If Michael accepts the offer, he is behaving rationally.
• B)If Michael rejects the offer, he may value fairness more than $1.
• C)If Michael rejects the offer, Audrey made a bad choice by trying to keep $19 for herself.
• D)Any of the above could be correct.

---

Definitions:

Sexual Strategies

Theories or behaviors adopted by individuals to attract mates and ensure reproductive success.

Critics

Individuals who evaluate or analyze the merits and faults of artistic, literary, or performance works.

Sociobiology

A field of study that examines social behavior from an evolutionary perspective, focusing on how behavior has been shaped by natural selection.

Sexual Preferences

An individual's pattern of physical, emotional, and sexual attraction to others, which can vary widely among people.