This quiz works best with JavaScript enabled. Home > Finance > Economics > Microeconomics > Game Theory > Game Theory – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Game Theory Quiz 3 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Non-pricing strategies is when workers sell their labor. A) True. B) False. Show Answer Correct Answer: B) False. 2. Why could a player choose to be the follower in a Stackelberg game? A) Due to a more profitable Nash equilibrium. B) Due to information reveal. C) Due to the second mover advantage. D) Due to the first mover advantage. Show Answer Correct Answer: B) Due to information reveal. 3. 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. 4. 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) Transitive. B) Complete. C) Independent of irrelevant alternatives. D) Consistent. Show Answer Correct Answer: B) Complete. 5. Would Aircraft companies be in the oligopoly industry A) No. B) Yes. Show Answer Correct Answer: B) Yes. 6. 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. 7. When do we consider an agent rational? A) When they aim to maximize other-oriented payoffs. B) When they have intransitive preferences. C) When they have transitive preferences. D) When they aim to maximize self-oriented payoffs. Show Answer Correct Answer: C) When they have transitive preferences. 8. Each participant of the game is called player A) No. B) Yes. Show Answer Correct Answer: B) Yes. 9. 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. 10. 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. 11. 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. 12. The worst decisions for BOTH players are A) Split-Steal. B) Steal-Steal. C) Split-Split. D) Steal-Split. Show Answer Correct Answer: B) Steal-Steal. 13. 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. 14. The lure of profits supports price collusion. A) False. B) True. Show Answer Correct Answer: B) True. 15. Even though video games can be frustrating or difficult-people continue to play them because of A) Competitiveness. B) Payoff. C) Boredom. D) Money. Show Answer Correct Answer: B) Payoff. 16. 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. 17. Which hand would win in poker? A) 2 pair. B) Full house. C) 4 of a kind. D) Straight flush. Show Answer Correct Answer: D) Straight flush. 18. Is Dominant Strategy always a Nash equilibrium? A) Yes. B) Cant say. C) No. D) Sometimes. Show Answer Correct Answer: A) Yes. 19. ..... is not a consideration of game theory. A) Game controller reaction. B) Social interactions. C) Competition among people. D) Decision making. Show Answer Correct Answer: A) Game controller reaction. 20. Game theory demonstrates that strategies change as ..... A) People begin to cheat. B) Experience points are gained. C) Power ups are collected. D) More people participate. Show Answer Correct Answer: D) More people participate. 21. Rectangular game is also known as A) Zero sum game. B) Two-person zero sum game. C) Game. D) Competetive game. Show Answer Correct Answer: B) Two-person zero sum game. 22. Individually, the worst decisions are (start with self) A) Split-Steal. B) Steal-Split. C) Steal-Steal. D) Split-Split. Show Answer Correct Answer: A) Split-Steal. 23. Individually, Steal-Split is the best and Split-Steal the worst. Pursuing their individual interests, players strongly prefer A) Split. B) Steal. Show Answer Correct Answer: B) Steal. 24. The following are true statements from game theory except..... A) Game theory is a tool for determining policies in an organization. B) Game theory is a framework for thinking about strategic interaction. C) Mastering knowledge related to game theory does not guarantee us to win the competition. D) Game theory can only be explained using matrix models like mathematics. Show Answer Correct Answer: D) Game theory can only be explained using matrix models like mathematics. 25. Which one of the following options describes a strategy of the game? A) BHG departmental store decides to offer a storewide Christmas sale. B) Metro departmental store stands to gain 20% more in sales revenue. C) BHG departmental store stands to lose 10% of sales revenue. D) None of above. Show Answer Correct Answer: A) BHG departmental store decides to offer a storewide Christmas sale. 26. Persuade each other to move from Steal-Steal to Split-Split, players A) She broke her promise. B) She broke her promise. C) She was. D) She was smart. Show Answer Correct Answer: A) She broke her promise. 27. From the previous point, V = 5. Player B's V value =? A) -5. B) 5. C) -10. D) 10. Show Answer Correct Answer: A) -5. 28. How much of the money, the man hoped to win? A) 70%. B) 50%. C) 0%. D) 100%. Show Answer Correct Answer: B) 50%. 29. What is the highest ranking hand in poker? A) Royal flush. B) Straight. C) Full house. D) Straight flush. Show Answer Correct Answer: A) Royal flush. 30. How can we trust that the other player won't cheat? A) We can't. B) Limit their choices. Show Answer Correct Answer: B) Limit their choices. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesGame Theory Quiz 1Game Theory Quiz 2Game 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