The Interaction of the Ant and the Acacia Tree, in Which

question 231

Multiple Choice

The interaction of the ant and the acacia tree, in which the ant builds nests in the acacia's thorns and feeds on its nectar while also defending the acacia from herbivores, is most likely a product of

• A) chance.
• B) coevolution.
• C) competition.
• D) favorable climates.
• E) changing environments.

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Definitions:

Behavioral Economists

Economists who study how psychological, social, cognitive, and emotional factors affect the economic decisions of individuals and institutions.

Inconsistent Anchoring

A cognitive bias where individuals rely too heavily on an initial piece of information (anchor) to make subsequent judgments but inconsistently adjust away from that anchor.

Prospect Theory

A behavioral economic theory that describes the way people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known.

Matching Contribution

A contribution to a retirement plan, for instance, where an employer matches the employee's contribution up to a certain percentage.