This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Game Theory > Game Theory – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Game Theory Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The following are the basic elements in the game theory model, except..... A) Players. B) Ganjaran (Pay-Offers). C) Strategy (Strategies). D) Game matrices. Show Answer Correct Answer: D) Game matrices. 2. What is the outcome of Bertrand's competition? A) Prices get higher. B) Pricey get lower and lower until MC=MR. C) Prices don't change. D) Price creates a surplus. Show Answer Correct Answer: B) Pricey get lower and lower until MC=MR. 3. If a player is risk-seeking, then the shape of their utility function is ..... A) Concave up. B) Linear. C) Concave down. D) None of above. Show Answer Correct Answer: A) Concave up. 4. This is an illegal practice of an oligopoly working together to set prices. A) Collusion. B) Monopolistic competition. C) Competitive pricing. D) Priceline negotiation. Show Answer Correct Answer: A) Collusion. 5. Games with ..... gameplay requires players to take their own actions while at the same time track the actions of their opponents A) Simultaneous. B) Asymmetric. C) Zero-sum. D) Turn based. Show Answer Correct Answer: A) Simultaneous. 6. Which hand wins? A) Three of a kind. B) 2 pairs. C) High card. D) 1 pair. Show Answer Correct Answer: A) Three of a kind. 7. The rule of decision making in advance of all plays by which he decides the activities he should adopt is called A) Value of the game. B) Pay off. C) Saddle point. D) Strategy. Show Answer Correct Answer: D) Strategy. 8. Chess is an example of where all players have A) Imperfect information. B) Only one dominant strategy. C) Balanced strategy options. D) Perfect information. Show Answer Correct Answer: D) Perfect information. 9. What are repeated oligopoly games? A) Games played by multiple firms in an industry, where they make strategic decisions over multiple rounds. B) Games played by two firms in an industry, where they make strategic decisions over multiple rounds. C) Games played by multiple firms in an industry, where they make strategic decisions in a single round. D) Games played by two firms in an industry, where they make strategic decisions in a single round. Show Answer Correct Answer: A) Games played by multiple firms in an industry, where they make strategic decisions over multiple rounds. 10. Decision making is an effort to determine the best steps with minimal risk to achieve targets. The type of decision taken when there is a lack of supporting information is..... A) Representation decisions. B) Empirical decisions. C) Exploration decisions. D) Informed decisions. Show Answer Correct Answer: C) Exploration decisions. 11. There are 2 violet balls and 4 pink balls in a bag. If two balls are drawn one after the other, then what is the probability of getting violet first and pink next, if the first ball drawn is replaced? A) 1/3. B) 2/9. C) 1/6. D) 1/4. Show Answer Correct Answer: B) 2/9. 12. Which market type is the least competitive? A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 13. Maximin is A) The minimum value of the minimum. B) The maximum value of the maximum. C) Maximum value of minimum. D) The minimum value of the maximum. Show Answer Correct Answer: C) Maximum value of minimum. 14. What can we safely remove in strategic form games? A) Strictly dominant strategies. B) Strictly dominated strategies. C) Weakly dominant strategies. D) Weakly dominated strategies. Show Answer Correct Answer: B) Strictly dominated strategies. 15. ..... strategies involve making choices that consider the action of others A) Mathematical. B) Nash. C) Game theory. D) Optimum. Show Answer Correct Answer: D) Optimum. 16. Jon made 15 out of 35 free throws. What is his experimental probability as a fraction? **SIMPLIFY THE FRACTION!** A) 3/7. B) 15/35. C) 1/2. D) 5/7. Show Answer Correct Answer: A) 3/7. 17. Identify the players in the game A) The shoppers. B) Metro and BHG departmental stores. C) Both Metro and BHG departmental stores and the shoppers. D) None of above. Show Answer Correct Answer: B) Metro and BHG departmental stores. 18. The Prisoner's Dilemma is a famous model demonstrating A) Game theory. B) Game design. C) Game programming. D) Character behaviors. Show Answer Correct Answer: A) Game theory. 19. What is Game Theory? A) A mathematical tool for analyzing strategic interactions. B) A board game. C) A theory about video games. D) A sports strategy. Show Answer Correct Answer: A) A mathematical tool for analyzing strategic interactions. 20. If a firm follows their dominant strategy they will A) Do what's best for them regardless of what their competition does. B) Do what's best of them in response to the actions of their competition. C) Pursue a strategy that leads to the best joint outcome for all firms involved. D) Not engage in pricing competition. Show Answer Correct Answer: A) Do what's best for them regardless of what their competition does. Next →Related QuizzesMicroeconomics QuizzesEconomics QuizzesGame Theory Quiz 2Game Theory Quiz 3Game Theory Quiz 4Game Theory Quiz 5Game Theory Quiz 6Game Theory Quiz 7Game Theory Quiz 8Game Theory Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books