Economists Have Used the Ultimatum Game and the Dictator Game

question 279

Multiple Choice

Economists have used the ultimatum game and the dictator game in experiments designed to determine

• A)whether consumers care about fairness when they make decisions.
• B)whether consumers believe it is fair for producers to raise the price of a product for which there is excess demand.
• C)whether consumers understand the difference between implicit costs and explicit costs.
• D)whether consumers understand the rule of equal marginal utility per dollar spent.

---

Definitions:

United States

A federal republic in North America comprising 50 states and a federal district, known for its democratic governance and diverse population.

Yalta Conference

A meeting held in February 1945, where President Franklin D. Roosevelt, Prime Minister Winston Churchill, and Premier Joseph Stalin discussed Europe's post-war reorganization primarily focusing on the re-establishment of nations conquered by Germany.

Free Elections

The process by which a population chooses its leaders through a system of voting that is open and free from undue influence or coercion.