Question 1

The concept of Nash Equilibrium is an important solution concept because it helps make predictions.

Accepted Answer

A) True 
 B)False

Question 2

Game Matrix III

The following questions refer to the game matrix below. Each firm has a choice of advertising, Ads, or not advertising, No ad. The profits each gets depend upon which it chooses.

-Refer to Game Matrix III.The Nash equilibrium is to be found where

Accepted Answer

A)  neither firm advertises. 
B)  Firm A advertises,Firm B does not. 
C)  Firm A does not advertise but Firm B does. 
D)  both firms choose to advertise. 
A)  neither firm advertises. 
B)  Firm A advertises,Firm B does not. 
C)  Firm A does not advertise but Firm B does. 
D)  both firms choose to advertise.

Question 3

One reason that DOWN,RIGHT is not a NASH equilibrium is that

Accepted Answer

A)  Player B receives a payoff of 8 as opposed to the payoff of 20 that he would receive if he changed his strategy. 
B)  Player B receives a payoff of 20 as opposed to the payoff of 30 that he would receive if he changed his strategy. 
C)  Player A receives a payoff of 20 as opposed to the payoff of 30 that he would receive if he changed his strategy. 
D)  DOWN,RIGHT is a Nash equilibrium. 
A)  Player B receives a payoff of 8 as opposed to the payoff of 20 that he would receive if he changed his strategy. 
B)  Player B receives a payoff of 20 as opposed to the payoff of 30 that he would receive if he changed his strategy. 
C)  Player A receives a payoff of 20 as opposed to the payoff of 30 that he would receive if he changed his strategy. 
D)  DOWN,RIGHT is a Nash equilibrium.

Question 4

When neither player in a game would want to deviate from a particular outcome,taking the opponent's behavior as given,the outcome is

Accepted Answer

A)  a Stackelberg equilibrium. 
B)  Pareto optimal. 
C)  a Nash equilibrium. 
D)  a dominant strategy. 
A)  a Stackelberg equilibrium. 
B)  Pareto optimal. 
C)  a Nash equilibrium. 
D)  a dominant strategy.

Question 5

Game Matrix II
The following questions refer to the game matrix below. Player A can play the strategies "High" and "Low," and Player B can play the strategies "Odd" and "Even."
 
-Refer to Game Matrix II.Which outcomes in this game are Nash equilibria?

Accepted Answer

A)  The upper right-hand corner only. 
B)  The upper left-hand corner only. 
C)  Both the upper right-hand and lower left-hand corners. 
D)  This game has no Nash equilibria. 
A)  The upper right-hand corner only. 
B)  The upper left-hand corner only. 
C)  Both the upper right-hand and lower left-hand corners. 
D)  This game has no Nash equilibria.

Question 6

Consider each pair of strategies other than UP,RIGHT.Which of the following statements is not true about those pairs?

Accepted Answer

A)  They are all Pareto Optimal. 
B)  None of them are a Nash Equilibrium. 
C)  The players would not mutually agree to play any of them if such an agreement were possible. 
D)  Each requires that a player play a dominate strategy. 
A)  They are all Pareto Optimal. 
B)  None of them are a Nash Equilibrium. 
C)  The players would not mutually agree to play any of them if such an agreement were possible. 
D)  Each requires that a player play a dominate strategy.

Question 7

The main problem in the Prisoners' Dilemma is that the players involved fail to agree on an outcome that would be mutually beneficial.

Accepted Answer

A) True 
 B)False

Question 8

Game Matrix V

The following questions refer to the game matrix below. Each firm has a choice of saying Yes or NO. The profits each gets depend upon which it chooses.

-Refer to Game Matrix V.If X = 15 and Y = 15,then

Accepted Answer

A)  Player A has a dominant strategy,but Player B does not. 
B)  Player B has a dominant strategy,but Player A does not. 
C)  Both Players A and B have dominant strategies. 
D)  Neither Players have dominant strategies. 
A)  Player A has a dominant strategy,but Player B does not. 
B)  Player B has a dominant strategy,but Player A does not. 
C)  Both Players A and B have dominant strategies. 
D)  Neither Players have dominant strategies.

Question 9

Game Matrix V

The following questions refer to the game matrix below. Each firm has a choice of saying Yes or NO. The profits each gets depend upon which it chooses.

-Refer to Game Matrix V.Which of the following values of X and Y result in the only Nash Equilibrium being (No,No)and there also being a Prisoners' Dilemma?

Accepted Answer

A)  X = 21,Y = 9. 
B)  X = 19,Y = 11. 
C)  X = 31,Y = 11. 
D)  It is not possible for (No,No)to be a Nash Equilibrium and for there to be a Prisoners' Dilemma. 
A)  X = 21,Y = 9. 
B)  X = 19,Y = 11. 
C)  X = 31,Y = 11. 
D)  It is not possible for (No,No)to be a Nash Equilibrium and for there to be a Prisoners' Dilemma.

Question 10

A player has a dominant strategy when there is one strategy the player would want to follow regardless of the other player's behavior.

Accepted Answer

A) True 
 B)False

Question 11

Game Matrix I

The following questions refer to the game matrix below.

-Refer to Game Matrix I.What are the dominant strategies in this game?

Accepted Answer

A)  A's dominant strategy is  ,and B's dominant strategy is  . 
B)  A's dominant strategy is  ,but B does not have a dominant strategy. 
C)  B's dominant strategy is  ,but A does not have a dominant strategy. 
D)  Neither player has a dominant strategy. 
A)  A's dominant strategy is  ,and B's dominant strategy is  . 
B)  A's dominant strategy is  ,but B does not have a dominant strategy. 
C)  B's dominant strategy is  ,but A does not have a dominant strategy. 
D)  Neither player has a dominant strategy.

Question 12

A dominant strategy is one which

Accepted Answer

A)  is best for a player no matter what strategy the other player chooses. 
B)  is optimal given the other player's strategy,but may not be optimal should the other player switch strategies. 
C)  will lead to a Pareto-optimal outcome. 
D)  will be chosen by the first player in a sequential game. 
A)  is best for a player no matter what strategy the other player chooses. 
B)  is optimal given the other player's strategy,but may not be optimal should the other player switch strategies. 
C)  will lead to a Pareto-optimal outcome. 
D)  will be chosen by the first player in a sequential game.

Question 13

Since Ditto can always be expected to choose the same activity as Dot in the copycat game

Accepted Answer

A)  any move by Dot to escape from Ditto would not be a Pareto improvement. 
B)  any move by Dot to escape from Ditto would be a Pareto improvement. 
C)  Ditto's choice to follow Dot is a Pareto improvement over going by himself. 
D)  Ditto's choice to follow Dot would be a Pareto improvement over playing by himself so long as Dot does not move. 
A)  any move by Dot to escape from Ditto would not be a Pareto improvement. 
B)  any move by Dot to escape from Ditto would be a Pareto improvement. 
C)  Ditto's choice to follow Dot is a Pareto improvement over going by himself. 
D)  Ditto's choice to follow Dot would be a Pareto improvement over playing by himself so long as Dot does not move.

Question 14

When a game has more than one Nash equilibrium,

Accepted Answer

A)  at least one of them will be Pareto optimal. 
B)  they will all tend to be unstable. 
C)  they must provide the same total payoff to the players. 
D)  it is difficult to predict which of them will actually occur. 
A)  at least one of them will be Pareto optimal. 
B)  they will all tend to be unstable. 
C)  they must provide the same total payoff to the players. 
D)  it is difficult to predict which of them will actually occur.

Question 15

In the Prisoners' Dilemma game,

Accepted Answer

A)  the Nash equilibrium is the only outcome that is not Pareto optimal. 
B)  neither player has a dominant strategy. 
C)  the Stackelberg equilibrium will be Pareto optimal if the game is played sequentially. 
D)  all possible outcomes are Nash equilibria. 
A)  the Nash equilibrium is the only outcome that is not Pareto optimal. 
B)  neither player has a dominant strategy. 
C)  the Stackelberg equilibrium will be Pareto optimal if the game is played sequentially. 
D)  all possible outcomes are Nash equilibria.

Question 16

Which of the following is a normative concept?

Accepted Answer

A)  Nash equilibrium. 
B)  Stackelberg equilibrium. 
C)  Pareto optimality. 
D)  Nash equilibrium,Stackelberg equilibrium,and Pareto optimality are all normative concepts. 
A)  Nash equilibrium. 
B)  Stackelberg equilibrium. 
C)  Pareto optimality. 
D)  Nash equilibrium,Stackelberg equilibrium,and Pareto optimality are all normative concepts.

Question 17

In the Prisoners' Dilemma game,the only outcome that is not Pareto optimal is also the game's only Nash equilibrium.

Accepted Answer

A) True 
 B)False

Question 18

When a game has more than one Nash equilibrium

Accepted Answer

A)  players will choose the strategies which maximize total welfare. 
B)  players are likely to choose the strategies which minimize total welfare. 
C)  it is difficult to predict which of the equilibria will occur or whether it is stable. 
D)  it is difficult to predict which of the equilibria will occur but once one is reached it is likely to remain stable. 
A)  players will choose the strategies which maximize total welfare. 
B)  players are likely to choose the strategies which minimize total welfare. 
C)  it is difficult to predict which of the equilibria will occur or whether it is stable. 
D)  it is difficult to predict which of the equilibria will occur but once one is reached it is likely to remain stable.

Question 19

Consider the Prisoners' Dilemma game,and suppose one player confesses but the other player does not confess.This outcome is

Accepted Answer

A)  a Nash equilibrium. 
B)  Pareto optimal. 
C)  a Pareto improvement over the outcome where both players confess. 
D)  Pareto-inferior to the outcome where neither player confesses. 
A)  a Nash equilibrium. 
B)  Pareto optimal. 
C)  a Pareto improvement over the outcome where both players confess. 
D)  Pareto-inferior to the outcome where neither player confesses.

Question 20

In a sequential game,guaranteed commitment to a strategy will make a player worse off.

Accepted Answer

A) True 
 B)False

The concept of Nash Equilibrium is an important solution concept because it helps make predictions.

Game Matrix III The following questions refer to the game matrix below. Each firm has a choice of advertising, Ads, or not advertising, No ad. The profits each gets depend upon which it chooses. -Refer to Game Matrix III.The Nash equilibrium is to be found where

One reason that DOWN,RIGHT is not a NASH equilibrium is that

When neither player in a game would want to deviate from a particular outcome,taking the opponent's behavior as given,the outcome is

Game Matrix II The following questions refer to the game matrix below. Player A can play the strategies "High" and "Low," and Player B can play the strategies "Odd" and "Even." -Refer to Game Matrix II.Which outcomes in this game are Nash equilibria?

Consider each pair of strategies other than UP,RIGHT.Which of the following statements is not true about those pairs?

The main problem in the Prisoners' Dilemma is that the players involved fail to agree on an outcome that would be mutually beneficial.

Game Matrix V The following questions refer to the game matrix below. Each firm has a choice of saying Yes or NO. The profits each gets depend upon which it chooses. -Refer to Game Matrix V.If X = 15 and Y = 15,then

A player has a dominant strategy when there is one strategy the player would want to follow regardless of the other player's behavior.

Game Matrix I The following questions refer to the game matrix below. -Refer to Game Matrix I.What are the dominant strategies in this game?

A dominant strategy is one which

Since Ditto can always be expected to choose the same activity as Dot in the copycat game

When a game has more than one Nash equilibrium,

In the Prisoners' Dilemma game,

Which of the following is a normative concept?

In the Prisoners' Dilemma game,the only outcome that is not Pareto optimal is also the game's only Nash equilibrium.

When a game has more than one Nash equilibrium

Consider the Prisoners' Dilemma game,and suppose one player confesses but the other player does not confess.This outcome is

In a sequential game,guaranteed commitment to a strategy will make a player worse off.

Supply,demand,and Equilibrium

Prices,costs and Gains From Trade

The Behavior of Consumers

Consumers in the Marketplace

The Behavior of Firms

Production and Costs

Competition

Welfare Economics and the Gains From Trade

Knowledge and Information

Monopoly

Market Power,collusion,and Oligopoly

External Costs and Benefits

Common Property and Public Goods

The Demand for Factors of Production

The Market for Labor

Allocating Goods Over Time

Risk and Uncertainty

What Is Economics

Filters

Exam 12: The Theory of Games

The concept of Nash Equilibrium is an important solution concept because it helps make predictions.

Game Matrix III The following questions refer to the game matrix below. Each firm has a choice of advertising, Ads, or not advertising, No ad. The profits each gets depend upon which it chooses. -Refer to Game Matrix III.The Nash equilibrium is to be found where

One reason that DOWN,RIGHT is not a NASH equilibrium is that

When neither player in a game would want to deviate from a particular outcome,taking the opponent's behavior as given,the outcome is

Game Matrix II The following questions refer to the game matrix below. Player A can play the strategies "High" and "Low," and Player B can play the strategies "Odd" and "Even." -Refer to Game Matrix II.Which outcomes in this game are Nash equilibria?

Consider each pair of strategies other than UP,RIGHT.Which of the following statements is not true about those pairs?

The main problem in the Prisoners' Dilemma is that the players involved fail to agree on an outcome that would be mutually beneficial.

Game Matrix V The following questions refer to the game matrix below. Each firm has a choice of saying Yes or NO. The profits each gets depend upon which it chooses. -Refer to Game Matrix V.If X = 15 and Y = 15,then

A player has a dominant strategy when there is one strategy the player would want to follow regardless of the other player's behavior.

Game Matrix I The following questions refer to the game matrix below. -Refer to Game Matrix I.What are the dominant strategies in this game?

A dominant strategy is one which

Since Ditto can always be expected to choose the same activity as Dot in the copycat game

When a game has more than one Nash equilibrium,

In the Prisoners' Dilemma game,

Which of the following is a normative concept?

In the Prisoners' Dilemma game,the only outcome that is not Pareto optimal is also the game's only Nash equilibrium.

When a game has more than one Nash equilibrium

Consider the Prisoners' Dilemma game,and suppose one player confesses but the other player does not confess.This outcome is

In a sequential game,guaranteed commitment to a strategy will make a player worse off.

Supply,demand,and Equilibrium

Prices,costs and Gains From Trade

The Behavior of Consumers

Consumers in the Marketplace

The Behavior of Firms

Production and Costs

Competition

Welfare Economics and the Gains From Trade

Knowledge and Information

Monopoly

Market Power,collusion,and Oligopoly

External Costs and Benefits

Common Property and Public Goods

The Demand for Factors of Production

The Market for Labor

Allocating Goods Over Time

Risk and Uncertainty

What Is Economics

Filters