This quiz works best with JavaScript enabled. Home > Finance > Economics > Microeconomics > Game Theory > Game Theory – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Game Theory Quiz 1 (30 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) Game matrices. B) Strategy (Strategies). C) Players. D) Ganjaran (Pay-Offers). Show Answer Correct Answer: A) 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) Turn based. C) Zero-sum. D) Asymmetric. Show Answer Correct Answer: A) Simultaneous. 6. Which hand wins? A) 1 pair. B) 2 pairs. C) High card. D) Three of a kind. Show Answer Correct Answer: D) 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) Saddle point. C) Strategy. D) Pay off. Show Answer Correct Answer: C) Strategy. 8. Chess is an example of where all players have A) Perfect information. B) Balanced strategy options. C) Only one dominant strategy. D) Imperfect information. Show Answer Correct Answer: A) Perfect information. 9. What are repeated oligopoly games? A) Games played by multiple firms in an industry, where they make strategic decisions in a single round. B) Games played by two firms in an industry, where they make strategic decisions in a single round. C) Games played by multiple firms in an industry, where they make strategic decisions over multiple rounds. D) Games played by two firms in an industry, where they make strategic decisions over multiple rounds. Show Answer Correct Answer: C) 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) Empirical decisions. B) Informed decisions. C) Exploration decisions. D) Representation 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) 1/6. B) 2/9. C) 1/4. D) 1/3. Show Answer Correct Answer: B) 2/9. 12. Which market type is the least competitive? A) Monopoly. B) Oligopoly. C) Monopolistic competition. D) Perfect competition. Show Answer Correct Answer: A) Monopoly. 13. What can we safely remove in strategic form games? A) Strictly dominant strategies. B) Weakly dominated strategies. C) Weakly dominant strategies. D) Strictly dominated strategies. Show Answer Correct Answer: D) Strictly dominated strategies. 14. ..... strategies involve making choices that consider the action of others A) Nash. B) Optimum. C) Mathematical. D) Game theory. Show Answer Correct Answer: B) Optimum. 15. Jon made 15 out of 35 free throws. What is his experimental probability as a fraction? **SIMPLIFY THE FRACTION!** A) 5/7. B) 15/35. C) 1/2. D) 3/7. Show Answer Correct Answer: D) 3/7. 16. 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. 17. The Prisoner's Dilemma is a famous model demonstrating A) Game theory. B) Character behaviors. C) Game design. D) Game programming. Show Answer Correct Answer: A) Game theory. 18. What is Game Theory? A) A sports strategy. B) A mathematical tool for analyzing strategic interactions. C) A board game. D) A theory about video games. Show Answer Correct Answer: B) A mathematical tool for analyzing strategic interactions. 19. 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. 20. Prisoner's Dilemma is limited in its predictability because id does NOT consider individual ..... A) Experience. B) Complexity. C) Motivations. D) All of these answers. Show Answer Correct Answer: D) All of these answers. 21. The probability of flipping a coin and landing on tails is 1/2. If you flip the coin 100 times, approximately how many times could you expect to land on tails? A) 50 times. B) 100 times. C) 200 times. D) None of above. Show Answer Correct Answer: A) 50 times. 22. What is the most predictable outcome in the Prisoner's Dilemma? A) Both prisoners will remain silent. B) Prisoner A will testify against prisoner B. C) Prisoner B will testify against prisoner A. D) Both will testify against each other. Show Answer Correct Answer: D) Both will testify against each other. 23. Jack, ten, eight, six, seven of different suits A) High card. B) Straight flush. C) Flush. D) Straight. Show Answer Correct Answer: A) High card. 24. The core component of what a player knows or does not know as they play through a game is called A) Optimal. B) Information. C) Action. D) Payoff. Show Answer Correct Answer: B) Information. 25. Players expect a level of ..... as they replay a game more than once A) Consistancy. B) Tediousness. C) Boredom. D) Frustration. Show Answer Correct Answer: A) Consistancy. 26. Select a core components of video games. A) Gender. B) Color. C) Controller. D) Actions. Show Answer Correct Answer: D) Actions. 27. If a game has a saddle point, each player should play the same way every time. A) False. B) True. Show Answer Correct Answer: B) True. 28. A two-person zero-sum game means that the sum of losses to one player is equal to the sum of gains to other A) Yes. B) No. Show Answer Correct Answer: A) Yes. 29. Relative to the Nash equilibrium outcome in the prisoners' dilemma game, the opportunity to successfully cooperate would A) Lead both players to change their strategies. B) Lead one player to change their strategy, but not the other. C) Lead to a better payoff for one player, but not the other. D) Lead both players to remain in equilibrium. E) Have no effect on the payoffs received by the two players. Show Answer Correct Answer: A) Lead both players to change their strategies. 30. Would toy companies be in the oligopoly industries A) Yes. B) No. Show Answer Correct Answer: B) No. 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