In an Experiment That Employed the Dictator Game, Economists at Cornell

question 139

Multiple Choice

In an experiment that employed the dictator game, economists at Cornell University gave student "allocators" the option of dividing $20 in only two ways (a) $18 for themselves and $2 to another student, or (b) $10 for themselves and $10 to another student.What was one result from this experiment?

• A)Most allocators chose to give themselves $18 and $2 to the other students.
• B)Most of the students who were not allocators did not like having someone else make decisions for them.
• C)A majority of the female allocators chose option (a); a majority of the male allocators chose option (b).
• D)Most of the allocators apparently valued acting fairly.

---

Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity of the business.

Acid-Test Ratio

The acid-test ratio, also known as the quick ratio, measures a company's ability to pay its short-term liabilities with its most liquid assets.

Quick Ratio

A liquidity measure indicating a company's ability to cover its current liabilities with its most liquid assets, excluding inventory.

Book Value Per Share

A financial metric showing the portion of a company's net asset value attributable to each share of stock.