This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Game Theory > Game Theory – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Game Theory Quiz 14 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A subgame perfect equilibrium is a Nash equilibrium that A) Cannot persist through several periods. B) Involves only credible threats. C) Consists only of dominant strategies. D) Is unique. Show Answer Correct Answer: B) Involves only credible threats. 2. What is the Nash equilibrium in a game? (DOUBLE POINTS) A) A strategy where players collaborate. B) A stable strategy where no one benefits from changing. C) A point where all players lose. D) A point where one player dominates the game. Show Answer Correct Answer: B) A stable strategy where no one benefits from changing. 3. The twin non-confess strategy choice in the Prisoners' Dilemma can be described as A) Non-Pareto optimal and unstable. B) Pareto optimal and unstable. C) Non-Pareto optimal and stable. D) Pareto optimal and stable. Show Answer Correct Answer: B) Pareto optimal and unstable. 4. The actions of one company affects one another. A) Collusion. B) Perfect Competition. C) Interdependence. D) Imperfect competition. E) Game theory. Show Answer Correct Answer: C) Interdependence. 5. In the process of interaction in an organization, the role that functions as a technical regulator of all strategic directions is called..... A) Top Leader. B) Middle Management. C) Follower. D) Situation. Show Answer Correct Answer: B) Middle Management. 6. What is a noncooperative game? A) A game where players may communicate, but cannot make binding agreements. B) A game where players have completely opposed interests. C) A game of total conflict where the combined wealth of the players remains constant. D) A game with a finite number of options. Show Answer Correct Answer: A) A game where players may communicate, but cannot make binding agreements. 7. The situation when each player has found the maximum result based on the expectations of the actions taken by the other players is called..... A) Elasticity. B) Nash equilibrium. C) Dominant. D) Win-win solution. Show Answer Correct Answer: B) Nash equilibrium. 8. The position of such element in the pay off matrix, which is minimum in it's row & maximum in it's column is called A) Saddle point. B) Value of the game. C) Strategy. D) None. Show Answer Correct Answer: A) Saddle point. 9. What ethical concerns did the research team have when conducting the study? A) The need for anonymity of results. B) The need to inform participants about the theory. C) The enjoyment people get from playing video games. D) The confidentiality of individual results. Show Answer Correct Answer: A) The need for anonymity of results. 10. The balance equation associated with $n=0$ A) $\lambda_1P_1=\mu_0P_0$. B) $\lambda_1P_0=\mu_1P_1$. C) $\lambda_0P_0=\mu_1P_1$. D) $\lambda_0P_0=\mu_0P_0$. Show Answer Correct Answer: C) $\lambda_0P_0=\mu_1P_1$. 11. Assuming a pair of agents have a set of strategies, and they are worse off if they change is a A) Dominant. B) Pareto. C) Nash equilibrium. D) Max-min. Show Answer Correct Answer: C) Nash equilibrium. 12. Which of the following is true of every Nash equilibrium? A) It is the only Nash equilibrium in the game. B) It is also a dominant strategy equilibrium. C) Neither player wants to independently change their strategy. D) Neither player gains more than the other. E) Neither player can gain from changing their strategy. Show Answer Correct Answer: C) Neither player wants to independently change their strategy. 13. Real time strategy games are examples of ..... game play A) Turn based. B) Mixed strategy. C) Simultaneous. D) Action-oriented. Show Answer Correct Answer: C) Simultaneous. 14. The value of the game is denoted as A) G. B) U. C) V. D) None. Show Answer Correct Answer: C) V. 15. The strategy that will benefit the player the most. A) Dominant Strategy. B) Game theory. C) Collusion. D) Strategy. Show Answer Correct Answer: A) Dominant Strategy. 16. A strategy that maximizes an agent's payoff in the worst case is know as A) Dominant. B) Pareto. C) Nash equilibrium. D) Max-min. Show Answer Correct Answer: D) Max-min. 17. In games where players have ..... knowledge-all players witness all actions of the other player A) Superior. B) Game theory. C) Perfect. D) Imperfect. Show Answer Correct Answer: C) Perfect. 18. A distinguishing feature of oligopoly is that A) The firms do not attempt to maximise profits. B) The firms are faced by perfectly inelastic demand curves. C) The firm's pricing or output decisions are interdependent. D) No firm can raise price above long-run average cost. Show Answer Correct Answer: C) The firm's pricing or output decisions are interdependent. 19. True or False:You can have a win-win scenario in a zero-sum game. A) True. B) False. Show Answer Correct Answer: B) False. 20. There are 6 red marbles, 5 green marbles, and 4 yellow marbles in a bag. If Joe picks 2 marbles one after the other without replacement, then what is the probability that both are red in color? A) 2/5. B) 1/21. C) 4/25. D) 1/7. Show Answer Correct Answer: D) 1/7. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesGame Theory Quiz 1Game Theory Quiz 2Game Theory Quiz 3Game Theory Quiz 4Game Theory Quiz 5Game Theory Quiz 6Game Theory Quiz 7Game Theory Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books