Question : Phillips and Joseph two classmates who represented their college in : 1377598

Phillips and Joseph are two classmates who represented their college in a quiz competition as a team and won $500. However, the winning amount was handed over by the organizers to their professor who had accompanied them. The professor gave the money to Phillips 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.

32) Refer to the scenario above. If Joseph prefers more money to less, ________.

A) he will not accept any offer made by Phillips

B) he will always accept any offer made to him

C) Phillips will offer the lowest possible amount to Joseph

D) he will accept the offer only if Phillips pays him an equal share of the money

33) Refer to the scenario above. This is an example of a(n) ________.

A) ultimatum game

B) prisoners’ dilemma

C) zero-sum game

D) symmetric game

34) Refer to the scenario above. Phillips should play this game using ________.

A) backward induction

B) forward induction

C) mixed strategies

D) his dominated strategy

35) Refer to the scenario above. If Joseph prefers fairness to money, ________.

A) he will not accept any offer made by Phillips

B) he will always accept any offer made to him

C) he will accept the offer if offered an equal share of the money

D) Phillips will offer the minimum amount of money Joseph

Beth and Mary work as designers with a leading footwear manufacturer. Together, they had come up with a new design that became an instant hit 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 forego the chance to get rewarded.

36) Refer to the scenario above. The situation here is similar to that in a(n) ________.

A) prisoners’ dilemma

B) zero-sum game

C) ultimatum game

D) symmetric game

37) Refer to the scenario above. Beth should use ________ to play this game.

A) forward induction

B) backward induction

C) mixed strategies

D) her dominated strategy

38) Refer to the scenario above. If Mary prefers more money to less, ________.

A) she will not accept any offer that Beth makes

B) she will accept any offer that Beth makes

C) she will accept the offer only if Beth offers her $2,500

D) she will accept the offer only if Beth offers her $5,000

39) Refer to the scenario above. If Mary prefers fairness to money, ________.

A) she will not accept any offer that Beth makes

B) she will accept any offer that Beth makes

C) she will accept the offer only if Beth offers her $2,500

D) she will accept the offer only if Beth offers her $5,000

40) Which are the two ways in which people can help charitable causes?