Alex is given $10 to split between themself and a stranger, Ben. Alex can propose any split, and Ben must accept it. Which of the following proposed splits by Alex best demonstrates that altruism can be a matter of degree, where an individual is willing to incur a personal cost to benefit others but still prioritizes their own outcome?

Analyzing Charitable Donations

An individual's preferences can only be classified as altruistic if they are willing to accept an outcome where another person's payoff is greater than their own.

Interpreting an Economic Choice

An individual is given $10 and can choose how to split it between themself and another anonymous person. Match each of the following potential choices with the type of preference it best illustrates.

Comparing Degrees of Altruism

Maria is willing to give up $1 of her own money if it means another person receives $3, but she is unwilling to do so if the other person receives only $2. David is willing to give up $1 of his own money as long as the other person receives at least $1.50. Based on this information, which statement accurately compares their altruism?

Public Policy and Preferences

Consider two individuals, Sam and Pat, whose preferences for allocating money between themselves and another person can be described by their willingness to trade. For any given allocation, Sam is willing to give up $3 of their own money to increase the other person's amount by $1. In contrast, Pat is willing to give up only $0.50 of their own money to increase the other person's amount by $1. Based on this information, what can be concluded about their preferences?

An individual, Chloe, is deciding between four possible outcomes that will grant a monetary payoff to herself and to her friend, Leo. Chloe is altruistic, but she values each dollar she receives twice as much as each dollar Leo receives. She will always choose the outcome that provides her with the highest personal satisfaction based on this valuation. Which outcome will she choose?