This quiz works best with JavaScript enabled. Home > Finance > Economics > Microeconomics > Game Theory > Game Theory – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Game Theory Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Game Theory traces its origins to A) 1940's. B) World War I. C) Ancient warfare. D) Invention of Pong. Show Answer Correct Answer: C) Ancient warfare. 2. Representation of an object is called..... A) Plan. B) Model. C) Simulation. D) Description. Show Answer Correct Answer: B) Model. 3. Players have incentive to choose an action that makes them both worse off than if neither had chosen it. This describes: A) A dominant strategy. B) The prisoner's dilemma. C) The beta strategy. D) Nash equilibrium. E) Interdependence. Show Answer Correct Answer: B) The prisoner's dilemma. 4. What did John B. Watson conclude in his book 'Psychological Care of the Infant and Child'? A) Children should be brought up using a strictly scheduled, rules-based model. B) Children should be brought up using a permissive approach. C) Children should be brought up using a flexible learning pattern. D) Children should be brought up using a loving, flexible, and supportive approach. Show Answer Correct Answer: A) Children should be brought up using a strictly scheduled, rules-based model. 5. What is the Nash equilibrium (a) in this game. Payoffs are show in profits (millions) (can be more than one answer) A) Both firms invest. B) Firm 1 Invests, Firm 2 does not Invest. C) Firm 2 Invests, Firm 1 does not Invest. D) Both firms do not invest. Show Answer Correct Answer: A) Both firms invest. 6. The characteristic of oligopolistic firms that makes them different from all other types of firms is that oligopolistic firms: A) Consider each other's decisions. B) Face high barriers to entry. C) Produce differentiated products. D) Advertise their products. Show Answer Correct Answer: A) Consider each other's decisions. 7. A key characteristic of monopolistically competitive firms is A) Barriers to entry. B) Differentiated products. C) Few buyers and sellers. D) Long run economic profits. Show Answer Correct Answer: B) Differentiated products. 8. Which statement is valid for the Heuristic function? A) The heuristic function is used to solve mathematical problems. B) The heuristic function does not have any return type. C) The heuristic function takes parameters of type string and returns an integer value. D) The heuristic function calculates the cost of an optimal path between the pair of states. Show Answer Correct Answer: D) The heuristic function calculates the cost of an optimal path between the pair of states. 9. Which of the following is the notation for Vij A) Play. B) Saddle point. C) Pay off. D) None. Show Answer Correct Answer: C) Pay off. 10. In general, industries in the U.S. are becoming ..... competitive. A) Less. B) More. Show Answer Correct Answer: A) Less. 11. What characteristic of oligopolies makes game theory a useful tool to make predictions? A) Interdependence and strategic interactions. B) A single seller. C) Slightly differentiated products. D) The ability to engage in price discrimination. Show Answer Correct Answer: A) Interdependence and strategic interactions. 12. What is an extensive-form game? A) A game that progresses step by step, one move at a time, and can be modeled as a game tree. 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 that progresses step by step, one move at a time, and can be modeled as a game tree. 13. Repeating the Prisoner's Dilemma multiple times can also alter the predictability of the Prisoner's choices because ..... A) They give up trying. B) They learn from past mistakes. C) They get to know the judge. D) Of randomness. Show Answer Correct Answer: B) They learn from past mistakes. 14. Adversarial search problems uses ..... A) Cooperative Environment. B) Competitive Environment. C) Only Competitive and Cooperative Environment. D) Neither Competitive nor Cooperative Environment. Show Answer Correct Answer: B) Competitive Environment. 15. 4 eights and 1 ten A) 1 pair. B) 4 of a kind. C) Flush. D) High card. Show Answer Correct Answer: B) 4 of a kind. 16. The Prisoners' Dilemma is not a constant sum game because A) Some outcomes are better than others for both players. B) The prisoners' sentences are necessarily non-zero. C) The game does not have a Nash equilibrium. D) The sum of the prisoners' sentences in non-zero. Show Answer Correct Answer: A) Some outcomes are better than others for both players. 17. If the player knowns exactly what the other player is going to do, then the strategy is called A) Correct strategy. B) Mixed strategy. C) Pure strategy. D) None. Show Answer Correct Answer: C) Pure strategy. 18. A quantitative measurement of satisfaction of a person gets at the end of each play is called A) Saddle point. B) Pay off. C) Value of the game. D) None. Show Answer Correct Answer: B) Pay off. 19. Game Theory studies outcomes involving the ..... of competing parties A) Talent and efficiency. B) Age and experience. C) Skill and talent. D) Choices and actions. Show Answer Correct Answer: D) Choices and actions. 20. John Von Newman's most famous contribution to game theory and game design as his ..... theorem. A) Zero sum. B) Art of war. C) Relativity. D) Min/max. Show Answer Correct Answer: D) Min/max. 21. What is a Shapley value? A) Efficient and symmetric way to distribute the payoff of the coalition to the coalition members. B) A synonym for core solution. C) A subset of outcomes satisfying conditions of pivotal players. D) None of above. Show Answer Correct Answer: A) Efficient and symmetric way to distribute the payoff of the coalition to the coalition members. 22. A matrix which shows the gains and losses resulting from moves and counter moves is called pa of matrix A) Yes. B) No. Show Answer Correct Answer: A) Yes. 23. An Oligopoly is a market that has many producers and relatively low barriers. A) True. B) False. Show Answer Correct Answer: B) False. 24. When consumers are able and willing to pay for goods and services produced by those workers, workers see those goods and services increase. A) False. B) True. Show Answer Correct Answer: B) True. 25. When the sum of gains of one player is equal to the sum of losses to another player in a game, this situation is known as fair game A) No. B) Yes. Show Answer Correct Answer: A) No. 26. One of the clearest ways to apply game theory to game development is balancing the odds A) False. B) True. Show Answer Correct Answer: B) True. 27. What did Pavlov's experiments with dogs demonstrate? A) Dogs can be trained to peck at a particular colored disk to get food rewards. B) Dogs can learn behavior through modeling. C) Dogs can receive food rewards for pressing a bar in a complicated sequence. D) Dogs can associate the sound of a bell with the imminent arrival of food. Show Answer Correct Answer: D) Dogs can associate the sound of a bell with the imminent arrival of food. 28. Game theory is used to analyze the behavior of oligopolistic industries because A) There are many firms and it makes it easier to predict their behavior. B) Firms are interdependent. C) It makes economics more enjoyable to learn. D) Firms do not compete with one another. Show Answer Correct Answer: B) Firms are interdependent. 29. Game conditions include Zero and constant sum ball games..... A) The total amount of profit and loss is not 0. B) The total amount of profit and loss is Maximin. C) The total amount of profit and loss is Minimax. D) The total amount of profit and loss is 0. Show Answer Correct Answer: D) The total amount of profit and loss is 0. 30. Who developed game theory? A) John von Neumann and Oskar Morgenstern. B) Steven J. Brams and Morton D. Davis. C) Ernst Zermelo and John Nash. D) Thomas C. Schelling and Lloyd Shapley. Show Answer Correct Answer: A) John von Neumann and Oskar Morgenstern. ← 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 8Game Theory Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books