Suppose Justine and Sarah are playing the dictator game. Justine is the dictator and has $150 to allocate. Based on repeated experiments of the dictator game, what amounts, on average, are Justine and Sarah most likely to receive? Multiple Choice $87 for Justine and $63 for Sarah. $0 for Justine and $150 for Sarah. $75 for Justine and $75 for Sarah. $150 for Justine and $0 for Sarah.
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- Willa and Lora are playing the dictator game. Let ww and wL be the amount of money Willa and Lora receive in the game, respectively. Willa plays the role of the dictator and must decide how to split $10. Suppose Willa’s preferences are given by U(ww,wL)=ww (second letters are subscripts). How much will Willa keep and how much will she give to Lora? Explain your answer in one or two sentences. Suppose instead that Willa’s preferences are given by U(ww,wL)=min(ww,wL). (second letters are subscripts) . How much will Willa keep and how much will she give to Lora? Explain your answer in one or two sentences.Suppose that each week Fiona buys 16 peaches and 4 apples at her local farmer's market. Both kinds of fruit cost $1 each. From this we can infer that: If Fiona is maximizing her utility, then her marginal utility from the 16th peach she buys must be greater than her marginal utility from the 4th apple she buys. Fiona is not maximizing her utility. If Fiona is maximizing her utility, then her marginal utility from the 16th peach she buys must be equal to her marginal utility from the 4th apple she buys. The law of diminishing marginal utility does not hold for Fiona.Q2. Preferences and utilityLet's assume that country A prefers not to make additional concessions (outcome C1) to country B than granting those concessions (outcome C2), but a continued war (outcome C3) would be worse than making the additional concessions (C2). The following utility function over the outcomes specifies the intensity of preferences for country A over the outcomes: u(C1) = 1, u(C2) = 0.3, and u(C3) = 0. Country A can choose to refuse concessions (action A1) or allow concessions (action A2). The outcome that will occur is a function of the "type" of country B's leader.If country A refuses concession (A1), country B will not initiate a war (outcome C1) if country B's leader is amicable, while it will enter a war (outcome C3) if the leader is belligerent. There is a probability p(S1) = 0.6 that country B's leader is amicable and a probability p(S2) = 0.4 that country he's belligerent. If country A allows concession (A2), both in case of country A is amicable p(S1) and…
- What are four responses to the claim that people should not behave in the way described in this chapter?Suppose you would have to pay Alicia at least $150 to get her to part with a ticket she just bought to see her favorite band play next Friday. Loss aversion implies that if Alicia had not yet bought the ticket, she would: Multiple Choice no longer be interested in purchasing it. be willing to pay more than $150 for it. be willing to pay exactly $150 for it. be willing to pay less than $150 for it.Consider an economy composed of 16 consumers. Of these, 5 consumers each own one right shoe and 11 consumers each own one left shoe. Shoes are indivisible. Everyone has the same utility function, which is Min(2R, L}, where R and L are, respectively, the quantities of right and left shoes con sumed. A) (10%) Is the status quo (where each individual has his own shoe) Pareto efficient? If so, briefly explain why. If not, provide a Pareto improvement b) (10%) Characterize all Pareto efficient allocations
- Suppose Colin's mom has decided to take him out to breakfast to celebrate his birthday. Colin is having a hard time deciding between breakfast combo #1 (3 pancakes and 2 scrambled eggs) and breakfast combo #2 (2 pancakes and 3 scrambled eggs) because they both sound equally good to him (and since his mom is paying for breakfast, he doesn't care about how much they cost). He ends up flipping a coin to decide which one to have. Which of following the statements are true? Select all that apply. Breakfast combo #1 and breakfast combo #2 are on the same indifference curve for Colin.Breakfast combo #1 and breakfast combo #2 are on the same indifference curve for Colin. Scrambled eggs and pancakes are perfect substitutes for Colin.Scrambled eggs and pancakes are perfect substitutes for Colin. If Colin gets breakfast combo #1 his willingness to give up scrambled eggs for pancakes is likely to be lower than if he had gotten breakfast combo #2. If Colin gets breakfast combo #1…Modified True or False: State whether each statement is true or false. If the statement is false, briefly explain why it is so, and then restate it to make it true. k. Pareto efficiency or Pareto optimality is a condition where no change is possible that will make some members of society better off without making some other members of society worse off.Asap Suppose Faith and Mickey are playing both dictator and ultimatum games. Faith is the dictator/proposer and has $80 to allocate. Based on repeated experiments of the dictator and ultimatum games, what payouts to Mickey would be most consistent with the findings of behavioral economists? Multiple Choice O. Mickey receives $0 from the dictator game and $8 from the ultimatum game. O. Mickey receives $47 from the dictator game and $42 from the ultimatum game. O. Mickey receives $40 from the dictator game and $40 from the ultimatum game. O. Mickey receives $33 from the dictator game and $38 from the ultimatum game.
- When using the social ecological model, which of the following would be considered part of the "exosystem" of influence on an individual's physical activity? O Personal factors O public policy O Institutional factors O Exosystem does not exist in the social ecological model If you have a client who wants to work out on his own, which of the following method of prescribing exercise intensity you should recommend to be more accurate? O Rating of perceived exertion (RPE) O Talk test O % Age predicted HRmax O % Heart rate reserve (measured)We learned that we can use choice between a gamble over someone's best and worst outcomes and getting an outcome of interest (like getting pizza) for certain as a way to assign numeric values to utility (on a scale of 0 to 1). Using this method, if you are indifferent between the following: A gamble that has a 0.3 chance of your best possible outcome (and no lower chance), and a 0.7 chance of your worst possible outcome. Getting pizza for certain. it means that your utility for getting pizza is:Suppose that 2 roommates, Andy and Bob, are trying to pick an apartment in Chicago. Locations can be chosen from set of alternatives A={ x: x exists [0,1]}. Andy and Bob both want to minimize their daily commute but they work at different locations: Andy at xA=0.3, while Bob at xB=0.6. Specifically, their utility functions are: ui(x)= -(x-xi)2. Question: What is the set of all Pareto Efficient outcomes in A, assuming no money can be exchanged.