Chat with us, powered by LiveChat 5 questions (must show work) - Essayabode

 

1) Michelle wanted to buy a new car. However, she could not select a model that both suited her needs and was affordable at the same time. She finally decided to buy a Porsche when she learned that two of her colleagues had bought them, despite its price exceeding the money she had saved for her car. Explain her behavior. 

2)What are the two ways by which people can help charitable causes?

3)An economics professor has devised an interesting game to test the understanding of his students. He randomly selects two students from his class and gives one of them a $50 bill. He then asks the student what percentage of the $50 she would give to her classmate. The first student can choose any percentage she wishes, while the second student can choose whether or not to accept the offer. If the second student does not accept the offer, the professor will take the bill back, but if he accepts the offer, the money will be divided in the ratio decided by the first student. (a) What is the likely outcome of this game if both students value more money to less? (b) What is the likely outcome of this game if the second student values fairness?

4)Differentiate between the two types of altruism.

5)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?