Consider the Following Scenario When Answering the Following Questions

question 95

Multiple Choice

Consider the following scenario when answering the following questions:
Danika and Yolanda are playing an ultimatum game where Yolanda is given an eight-slice pizza and asked to propose a way of splitting it with Danika.When Danika learns Yolanda's proposal,Danika chooses whether to accept or reject the split.If Danika accepts the split,both players receive the slices of pizza according to Yolanda's split proposal.If Danika rejects the split,both players receive nothing.This game will be played only once,so Yolanda 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 fairest split proposal Yolanda can offer would be if Yolanda receives ________ slice(s) and Danika receives ________ slice(s) .

• A) three; five
• B) one; seven
• C) two; five
• D) seven; one
• E) four; four

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Definitions:

Government Intervention

Involves actions taken by a government to affect the economy, which can include regulations, subsidies, tariffs, and direct spending.

Aggregate Supply Curve

A graphical representation depicting the total supply of goods and services that firms in an economy are willing to sell at a given price level over a period of time.

Maximum Output Level

The highest amount of production that a company or economy can sustain over a long period without leading to deterioration.

Real GDP

The measure of a country's economic output adjusted for price changes (inflation or deflation), reflecting the real value of goods and services produced.