Economists Have Used ________ and ________ in Experiments Designed to Determine

question 11

Multiple Choice

Economists have used ________ and ________ in experiments designed to determine whether consumers care about fairness when they make decisions.

• A)Giffen goods; luxury goods
• B)the income effect; the substitution effect
• C)the ultimatum game; the dictator game
• D)network externalities; the endowment effect

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Definitions:

Pareto Analysis

A decision-making technique that involves separating a limited number of input factors that have a significant impact from many that have a minor impact, based on the Pareto Principle.

Unsatisfying Hotel

A hotel that does not meet guests' expectations in terms of services, amenities, or other aspects of their stay.

Pareto Analysis

A statistical technique used for decision-making, based on the principle that a small number of causes are responsible for a large percentage of the effect.