The ultimatum game played in class was used to test a

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18. The “ultimatum game” played in class was used to test: a. The behavioral view that fairness is a standard part of consumers’ preference structures. b. Whether a market was perfect. c. Consumer sovereignty. d. Strategic behavior by firms.
19. A monopolistically competitive market is one in which:
20. “Positive Analysis” concerns all the following attributes EXCEPT one. Circle the incorrect answer :
21. An economic model consists of:
22. A consumer choosing a basket of goods, with a fixed income, will maximize utility when purchases are such that: a. Total utility is the same for each good. b. Total utility for each good is maximized. c. Marginal utility per dollar spent is the same for all goods. d. Marginal utility is the same for each good.
23. If labor is a variable input in production, the law of diminishing returns implies that in the short run:
24. When the own-price elasticity of demand is >1, say a high elasticity like 4, we say that:
25. When the cross-price elasticity for two goods is positive, the goods are:
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c. Complements. d. None of the above. 26. When demand exceeds supply, we say the following exists: a. A surplus. b. A demand shift. c. Shortage. d. Equilibrium.
27. Product A is 30% more expensive then the product B. If a consumer has to choose between the two products and chooses A it implies that:
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