When the Ultimatum Game Is Played for Larger Rather Than

question 117

Multiple Choice

When the ultimatum game is played for larger rather than smaller amounts of money, behavioral economists have found that when the proposed splits are very uneven

• A)responders are much more likely to accept the offer because of the amount of money involved.
• B)responders are no more likely to accept the offer if they consider the split to be unfair.
• C)responders are much less likely to accept the offer, because their sense of unfairness is heightened with larger amounts of money.
• D)responders will accept offers at a higher rate but will exact greater emotional penalties on the proposer.

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Definitions:

WTO

The World Trade Organization, an international body that regulates international trade agreements and aims to ensure smooth, free, and predictable trade flows.

Exploitation

The unfair use of someone's work or resources, often without proper compensation or regard for their wellbeing.

Foreign Direct Investment

A company or individual from one country putting money into business interests in another nation, either by setting up business operations or by purchasing business assets.

Export Processing Zones

Special areas within countries where imported materials undergo processing or manufacturing before being exported again, typically benefiting from incentives like tax exemptions.