Exam 18: Social Economics

Gary usually does not donate to charity.However,he donated money for an environmental awareness campaign launched by his friend.This is an example of ________.

Scenario: Beth and Mary work as designers for a leading footwear manufacturer. Together, they came up with a new design that was successful from the day it was launched in the market. Impressed with their performance, their boss wants to reward them. He hands over $5,000 to Beth and asks her to offer Mary any amount she wants. If Mary accepts the offer, the money will be split in the decided proportion. However, if Mary rejects the offer, both of them will forgo the chance to be rewarded. -Refer to the scenario above.If Mary prefers more money to less,________.

Scenario: Robert and Alice are participating in a reality show on television. Robert is offered $500 and is told that he can keep the money as long as he shares some of it with Alice. Robert can offer Alice as much or as little as he likes, but if Alice rejects his offer, neither of them will get to keep any money. -Refer to the scenario above.Robert should use ________ to play this game.

A teacher tells her students that she will give them a riddle that each student has to solve separately.Each student has to then announce his or her answer in the class.Those who get the correct answer will get a gift.Kate,a student in the class,decides to give the answer that most students give,although the answer she gets from solving the riddle is quite different.This is an example of ________.

One Sunday afternoon,your mother tells you and your brother that you can make some money by helping her wash dishes.Both of you decide to help her.Once both of you are done with the work,your mother gives you a $20 bill.She also says that you can divide the money between yourself and your brother in any proportion you want,but if your brother does not accept the amount he is being given,she will take all the money back. a)How much money should you offer your brother if he prefers more money to less? b)How much money should you offer your brother if you know that your brother prefers fairness to money?

A not-for-profit organization conducts several workshops to prevent drug addiction among teenagers.This is an example of ________.

Scenario: Phillip and Joseph are two classmates who represented their college in a quiz competition as a team and won $500. The winning amount was handed over by the organizers to their professor, who had accompanied them. The professor gave the money to Phillip and asked him to offer any amount he wants to Joseph. If Joseph accepts the offer, the money would be split in the decided proportion between them. However, if Joseph rejects the offer, the money would go to their college fund. -Refer to the scenario above.Phillip should play this game using ________.

________ is the process by which organizations imbue society with their ideology or opinion.

Scenario: Your car broke down while you were driving to the office one morning. You took it to the nearest service center and were told by the mechanic that you need to pay $500 for the repair. You are uncertain about whether to trust him. If you do not trust him, you have to take it to another service center, which is far away and inconvenient. If you trust him, he can either cooperate or defect (do an honest job or not). If he does an honest job, both of you will gain from the trade. If he does not do an honest job, he will gain $500 while you will lose your money. Clearly, he will gain more by defecting rather than by cooperating with you. -Refer to the scenario above.Which of the following is true?

Scenario: Tom and Harry are participating in a game in which the participants are divided into groups of two. Tom and Harry have been put in the same group. In each round of the game, Tom will be given an item. Tom can either give it to Harry or pass it on to the next team. If he decides to pass it on to the next team, neither of them will get the prize. If he gives it to Harry, Harry can either pass it on to the next team or sell it himself. If he passes it on to the next team, each of them will get $100. However, if he decides to sell it, he will get an amount higher than $100 and Tom will get nothing. -Refer to the scenario above.This is an example of ________.

Scenario: Pat and Joe are playing a game. The rules of the game are simple. Pat is given $100. He can either give it to Joe or keep it for himself. If he keeps it for himself, $50 will be taken back, and the remaining will be split between them. If he gives it to Joe, Joe can either divide it into two equal parts or keep it for himself. If he divides it into two equal parts, each of them will get $50. If he does not split the money, he will get the entire amount. -Refer to the scenario above.This is similar to ________.