This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Game Theory > Game Theory – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Game Theory Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Two-person zero sum game A) Loss of one player is equal to gain of other player. B) Loss of one player is not equal to gain of other player. C) Loss of one player is greater than gain of other player. D) Loss of one player is less than gain of other player. Show Answer Correct Answer: A) Loss of one player is equal to gain of other player. 2. Non-pricing strategies is when workers sell their labor. A) True. B) False. Show Answer Correct Answer: B) False. 3. Why could a player choose to be the follower in a Stackelberg game? A) Due to information reveal. B) Due to the first mover advantage. C) Due to the second mover advantage. D) Due to a more profitable Nash equilibrium. Show Answer Correct Answer: A) Due to information reveal. 4. Under steady state conditions for $n>0$ A) The expected rate of flow into and out of state n must be equal. B) The expected rate of flow into and out of state n must be reciprocals of each other. C) The expected rate of flow into and out of state n must be distinct. D) None of these. Show Answer Correct Answer: A) The expected rate of flow into and out of state n must be equal. 5. If, for any two alternatives a player can choose between, a player prefers the first to the second, the second to the first, or is indifferent between them, then the preferences are said to be ..... A) Complete. B) Transitive. C) Independent of irrelevant alternatives. D) Consistent. Show Answer Correct Answer: A) Complete. 6. Minimax 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: D) The minimum value of the maximum. 7. Would Aircraft companies be in the oligopoly industry A) Yes. B) No. Show Answer Correct Answer: A) Yes. 8. What are the limitations of game theory? A) Assumes people are rational, self-interested, and utility-maximizing. B) Does not account for cooperative behavior and caring for others. C) Cannot explain situations where Nash equilibrium is not reached. D) Does not consider the social context and the identity of the players. Show Answer Correct Answer: B) Does not account for cooperative behavior and caring for others. 9. When do we consider an agent rational? A) When they have intransitive preferences. B) When they aim to maximize self-oriented payoffs. C) When they have transitive preferences. D) When they aim to maximize other-oriented payoffs. Show Answer Correct Answer: C) When they have transitive preferences. 10. Each participant of the game is called player A) Yes. B) No. Show Answer Correct Answer: A) Yes. 11. What is a variable-sum game? A) A game where players may all be winners or losers. B) A game where players have completely opposed interests. C) A game where players can communicate and make binding agreements. D) A game with a finite number of options. Show Answer Correct Answer: A) A game where players may all be winners or losers. 12. What is the key concept in game theory? A) The game itself and its impact on players. B) The rewards based on the strategies of the players. C) The identities and preferences of the players. D) The available strategies and their effects. Show Answer Correct Answer: B) The rewards based on the strategies of the players. 13. Game theory can be applied to many fields of study such as A) Art. B) Chemistry. C) Calligraphy. D) Mathematics. Show Answer Correct Answer: D) Mathematics. 14. The worst decisions for BOTH players are A) Split-Split. B) Split-Steal. C) Steal-Split. D) Steal-Steal. Show Answer Correct Answer: D) Steal-Steal. 15. A price leader in the Stackelberg model is assumed to know A) The market demand curve. B) Its own cost function. C) Its rival's reaction function. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. The lure of profits supports price collusion. A) True. B) False. Show Answer Correct Answer: A) True. 17. Even though video games can be frustrating or difficult-people continue to play them because of A) Payoff. B) Competitiveness. C) Money. D) Boredom. Show Answer Correct Answer: A) Payoff. 18. What is a finite game? A) A game where each player has a finite number of options and the game cannot go on indefinitely. 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 each player has a finite number of options and the game cannot go on indefinitely. 19. Which hand would win in poker? A) 4 of a kind. B) 2 pair. C) Full house. D) Straight flush. Show Answer Correct Answer: D) Straight flush. 20. Is Dominant Strategy always a Nash equilibrium? A) Yes. B) No. C) Cant say. D) Sometimes. Show Answer Correct Answer: A) Yes. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesGame Theory Quiz 1Game Theory Quiz 2Game Theory Quiz 3Game Theory Quiz 5Game Theory Quiz 6Game Theory Quiz 7Game Theory Quiz 8Game Theory Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books