This quiz works best with JavaScript enabled. Home > Finance > Economics > Microeconomics > Game Theory > Game Theory – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Game Theory Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Game theory is concerned with A) The choice of an optimal strategy in conflict situations. B) Predicting the results of bets placed on games like roulette. C) Utility maximization by firms in perfectly competitive markets. D) The migration patterns of caribou in Alaska. Show Answer Correct Answer: A) The choice of an optimal strategy in conflict situations. 2. Game theory reveals that A) Each player looks after what is best for the industry. B) Firms in an oligopoly are not interdependent. C) Firms in an oligopoly choose their actions without regard for what other firms might do. D) The equilibrium might not be the best solution for the parties involved. E) If all firms in an oligopoly take the action that maximizes their profit, then the equilibrium will have the largest combined profit of all the firms. Show Answer Correct Answer: D) The equilibrium might not be the best solution for the parties involved. 3. A bag contains some red-colored and some blue-colored marbles. First a red-colored marble is drawn and then, without replacing the first marble, a blue-colored marble is drawn. Are the two events dependent or independent? A) Independent. B) Dependent. Show Answer Correct Answer: B) Dependent. 4. Where would the equilibrium of this game be? A) 3, 3. B) 1, 4. C) 4, 2. D) 6, 5. Show Answer Correct Answer: D) 6, 5. 5. In game theory, a situation in which one firm can gain only what another firm loses is called a: A) Predation game. B) Nonzero-sum game. C) Zero-sum game. D) Prisoners' dilemma. Show Answer Correct Answer: C) Zero-sum game. 6. What type of game makes you and your opponent make the same move A) Cooperative. B) Discrete. C) Symmetrical. D) Continuous. Show Answer Correct Answer: C) Symmetrical. 7. True or False:Game theory is used by computer scientists, mathematicians and economists to try and see how rational humans would behave in certain scenarios. A) False. B) True. Show Answer Correct Answer: B) True. 8. A model designed to determine the design of a building project is called..... A) Simulation. B) Model. C) Robot. D) Prototype. Show Answer Correct Answer: B) Model. 9. What did the research team find after collecting and analyzing the results? A) The computer simulation was not accurate in predicting human behavior. B) The human players produced different results than the model player. C) The simulated opponents were more skilled than the human players. D) The human players produced the same pattern of results as the model player. Show Answer Correct Answer: D) The human players produced the same pattern of results as the model player. 10. If a player is guessing as to which activity is to be selected by the other player on any particular occasions, then the strategy is called A) Correct strategy. B) Mixed strategy. C) Pure strategy. D) None. Show Answer Correct Answer: B) Mixed strategy. 11. What do you choose A) Defect. B) Collude. Show Answer Correct Answer: B) Collude. 12. A game is said to be fair if both upper and lower values of the game are the same and zero A) No. B) Yes. Show Answer Correct Answer: B) Yes. 13. A game with symmetric design means that all players have A) The same abilities. B) A balance of different abilities. C) An imbalance of abilities. D) A mix of similar and different abilities. Show Answer Correct Answer: A) The same abilities. 14. Split-Split are the best for BOTH players. However they failed to get it because A) The woman was greedy. B) Split-split was difficult to achieved. C) Coordinating their choices was difficult. D) The man was naive. Show Answer Correct Answer: B) Split-split was difficult to achieved. 15. The outcome of a game is known as payoff A) Yes. B) No. Show Answer Correct Answer: A) Yes. 16. Who has a dominant strategy and why? A) Firm A has a dominant strategy to Collude because they will choose this strategy regardless of the actions of firm A. B) Firm B has a dominant strategy to cheat, as their payoffs are higher than Firm A's. C) Firm A has a dominant strategy to cheat, as their payoffs are higher than firm A's. D) Neither firm has a dominant strategy. E) Firm B has a dominant strategy to Cheat because they will choose this strategy regardless of the actions of firm A. Show Answer Correct Answer: E) Firm B has a dominant strategy to Cheat because they will choose this strategy regardless of the actions of firm A. 17. What can be a result of a Stackelberg game? A) Second mover advantage. B) First mover advantage. C) Leader competition. D) Follower competition. Show Answer Correct Answer: B) First mover advantage. 18. What is the main focus of psychoanalytic theory in treating neuroses? A) Unlocking the unconscious mind. B) Analyzing childhood experiences. C) Using dream analysis and hypnosis. D) Identifying memories stored in the unconscious mind. Show Answer Correct Answer: A) Unlocking the unconscious mind. 19. What is the centipede game? A) A game where two players take turns to take the larger share of a slowly increasing money stash. B) A game where two players take turns to take the smaller share of a slowly increasing money stash. C) A game where two players take turns to decide whether to split a fixed amount of money. D) A game where two players take turns to decide whether to take the entire money stash or pass it to the other player. Show Answer Correct Answer: A) A game where two players take turns to take the larger share of a slowly increasing money stash. 20. How strategic thinking affects profit-maximizing decision in an oligopolistic market. A) Collusion. B) Game theory. C) Interdependence. D) Perfect Competition. E) Imperfect competition. Show Answer Correct Answer: B) Game theory. 21. A key characteristic of oligopolistic firms is A) Differentiated products. B) Interdependence between firms. C) No barriers to entry or exit. D) No long-run economic profits. Show Answer Correct Answer: B) Interdependence between firms. 22. A dominant strategy is one that? A) Relies upon their opponent making a particular choice to ensure the best outcome. B) Provides the company with its best outcome NO MATTER what their opponent does. Show Answer Correct Answer: B) Provides the company with its best outcome NO MATTER what their opponent does. 23. Zero-sum games are ones in which one player's ..... are directly related it another player's ..... A) Gains and losses. B) Symmetry and asymmetry. C) Level and experience points. D) Competitiveness and cooperativeness. Show Answer Correct Answer: A) Gains and losses. 24. A Nash equilibrium is a set of strategies for which, if played by all players, no player can do better by switching strategies ..... A) Cooperatively. B) Unilaterally. C) Simultaneously. D) Sequentially. Show Answer Correct Answer: B) Unilaterally. 25. What is the name of the famous example of game theory? A) Nash Equilibrium. B) Prisoner's Dilemma. C) The Monty Hall Problem. D) None of above. Show Answer Correct Answer: B) Prisoner's Dilemma. 26. A game is said to fair if A) Both upper and lower values of the game are zero. B) Upper and lower values are not zero. C) Upper and lower values are equal but not zero. D) All of the above. Show Answer Correct Answer: C) Upper and lower values are equal but not zero. 27. Which one of the following options describes a PAYOFF in this game? A) Metro departmental store stands to lose 10% in sales revenue. B) Metro departmental store decides to offer a storewide Christmas sale. C) Shoppers stand to gain from the competition. . D) None of above. Show Answer Correct Answer: A) Metro departmental store stands to lose 10% in sales revenue. 28. When looking at a payoff matrix, both companies make some money because ..... A) They are in an oligopoly. B) Brand loyalty. C) Some people switch their preferences depending on sale prices. D) All of the above. Show Answer Correct Answer: D) All of the above. 29. The reason the Prisoner's Dilemma is such a dilemma is because ..... A) The judge could change their mind. B) Both prisoners will cheat. C) Neither prisoner knows the other's decision. D) Nobody wants to go to jail. Show Answer Correct Answer: C) Neither prisoner knows the other's decision. 30. Two-person zero sum game A) Loss of one player is not equal to gain of other player. B) Loss of one player is equal to gain of other player. C) Loss of one player is less than gain of other player. D) Loss of one player is greater than gain of other player. Show Answer Correct Answer: B) Loss of one player is equal to gain of other player. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesGame Theory Quiz 1Game 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