Altruism and Experimental Economics

Description: This quiz is designed to assess your understanding of altruism and its role in experimental economics. It covers various aspects of altruism, including its definition, types, motivations, and experimental studies.
Number of Questions: 15
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Tags: altruism experimental economics behavioral economics game theory
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What is altruism?

  1. The act of putting the needs of others before one's own.

  2. The act of seeking personal gain at the expense of others.

  3. The act of maximizing one's own utility.

  4. The act of minimizing one's own utility.


Correct Option: A
Explanation:

Altruism is defined as the selfless concern for the welfare of others. It involves acting in a way that benefits others, even if it means sacrificing one's own interests.

Which type of altruism involves helping others because it makes you feel good?

  1. Pure altruism

  2. Impure altruism

  3. Conditional altruism

  4. Reciprocal altruism


Correct Option: B
Explanation:

Impure altruism is a type of altruism in which the individual helping others derives some personal benefit from the act, such as feeling good about themselves or gaining social approval.

What is the main motivation behind reciprocal altruism?

  1. The desire to help others

  2. The expectation of future benefits

  3. The desire to avoid punishment

  4. The desire to maximize one's own utility


Correct Option: B
Explanation:

Reciprocal altruism is a type of altruism in which individuals help others with the expectation that they will receive help in return in the future.

Which experimental game is commonly used to study altruism?

  1. The Prisoner's Dilemma

  2. The Ultimatum Game

  3. The Dictator Game

  4. The Public Goods Game


Correct Option: C
Explanation:

The Dictator Game is a simple experimental game used to study altruism. In this game, one player (the dictator) is given a sum of money and asked to divide it between themselves and another player (the receiver). The dictator has complete control over the division and can choose to give any amount to the receiver.

What is the main finding of the Dictator Game?

  1. Dictators always keep all the money for themselves.

  2. Dictators always give half of the money to the receiver.

  3. Dictators typically give a significant portion of the money to the receiver.

  4. Dictators typically give a small portion of the money to the receiver.


Correct Option: C
Explanation:

The main finding of the Dictator Game is that dictators typically give a significant portion of the money to the receiver, even though they have no obligation to do so. This suggests that altruism is a common human behavior.

Which experimental game is used to study altruistic punishment?

  1. The Prisoner's Dilemma

  2. The Ultimatum Game

  3. The Dictator Game

  4. The Public Goods Game


Correct Option: D
Explanation:

The Public Goods Game is an experimental game used to study altruistic punishment. In this game, players are given a sum of money and asked to contribute to a public good. The public good benefits all players, but each player has an incentive to free-ride and not contribute. If a player contributes to the public good, they are punished by losing some of their own money.

What is the main finding of the Public Goods Game?

  1. Players always contribute to the public good.

  2. Players never contribute to the public good.

  3. Players typically contribute a significant amount to the public good.

  4. Players typically contribute a small amount to the public good.


Correct Option: C
Explanation:

The main finding of the Public Goods Game is that players typically contribute a significant amount to the public good, even though they have an incentive to free-ride. This suggests that altruistic punishment is a common human behavior.

What is the main conclusion that can be drawn from experimental studies of altruism?

  1. Altruism is a rare human behavior.

  2. Altruism is a common human behavior.

  3. Altruism is only observed in certain cultures.

  4. Altruism is only observed in certain economic conditions.


Correct Option: B
Explanation:

The main conclusion that can be drawn from experimental studies of altruism is that altruism is a common human behavior. This is supported by the findings of the Dictator Game, the Public Goods Game, and other experimental games.

How does altruism affect economic efficiency?

  1. It always increases economic efficiency.

  2. It always decreases economic efficiency.

  3. It can increase or decrease economic efficiency, depending on the circumstances.

  4. It has no effect on economic efficiency.


Correct Option: C
Explanation:

Altruism can have both positive and negative effects on economic efficiency. On the one hand, altruism can lead to increased cooperation and sharing, which can improve economic efficiency. On the other hand, altruism can also lead to free-riding and moral hazard, which can reduce economic efficiency.

What are some policy implications of altruism?

  1. Governments should always promote altruism.

  2. Governments should never promote altruism.

  3. Governments should promote altruism in some cases and not in others.

  4. Governments should have no role in promoting altruism.


Correct Option: C
Explanation:

Governments should promote altruism in cases where it can lead to positive economic and social outcomes. For example, governments may promote altruism through tax incentives or public awareness campaigns. However, governments should not promote altruism in cases where it can lead to negative economic and social outcomes. For example, governments should not promote altruism in cases where it leads to free-riding or moral hazard.

What are some challenges in studying altruism experimentally?

  1. There are no challenges in studying altruism experimentally.

  2. It is difficult to design experiments that accurately measure altruism.

  3. It is difficult to control for confounding factors in altruism experiments.

  4. All of the above.


Correct Option: D
Explanation:

There are a number of challenges in studying altruism experimentally. One challenge is that it is difficult to design experiments that accurately measure altruism. Another challenge is that it is difficult to control for confounding factors in altruism experiments. For example, it is difficult to control for the effects of social norms, reciprocity, and self-interest.

What are some promising directions for future research on altruism?

  1. Studying altruism in different cultures.

  2. Studying altruism in different economic conditions.

  3. Studying the neural mechanisms of altruism.

  4. All of the above.


Correct Option: D
Explanation:

There are a number of promising directions for future research on altruism. One direction is to study altruism in different cultures. Another direction is to study altruism in different economic conditions. A third direction is to study the neural mechanisms of altruism.

What is the relationship between altruism and cooperation?

  1. Altruism always leads to cooperation.

  2. Cooperation always leads to altruism.

  3. Altruism and cooperation are unrelated.

  4. Altruism and cooperation are sometimes related and sometimes unrelated.


Correct Option: D
Explanation:

Altruism and cooperation are sometimes related and sometimes unrelated. Altruism can lead to cooperation, but it is not the only factor that can lead to cooperation. Cooperation can also be motivated by self-interest, reciprocity, and social norms.

What is the relationship between altruism and happiness?

  1. Altruism always leads to happiness.

  2. Happiness always leads to altruism.

  3. Altruism and happiness are unrelated.

  4. Altruism and happiness are sometimes related and sometimes unrelated.


Correct Option: D
Explanation:

Altruism and happiness are sometimes related and sometimes unrelated. Altruism can lead to happiness, but it is not the only factor that can lead to happiness. Happiness can also be caused by factors such as good health, financial security, and social relationships.

What is the relationship between altruism and religion?

  1. Altruism is always motivated by religion.

  2. Religion always motivates altruism.

  3. Altruism and religion are unrelated.

  4. Altruism and religion are sometimes related and sometimes unrelated.


Correct Option: D
Explanation:

Altruism and religion are sometimes related and sometimes unrelated. Religion can motivate altruism, but it is not the only factor that can motivate altruism. Altruism can also be motivated by factors such as empathy, social norms, and self-interest.

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