Question 1

Cooperation in prisoner's dilemma-type games:

Accepted Answer

A)  always benefits the players and the public. 
B)  always benefits the players, but does not always benefit the public. 
C)  doesn't always benefit the players, but always benefits the public. 
D)  doesn't always benefit the players or the public. 
A)  always benefits the players and the public. 
B)  always benefits the players, but does not always benefit the public. 
C)  doesn't always benefit the players, but always benefits the public. 
D)  doesn't always benefit the players or the public. B

Question 2

The figure shown portrays a game using a:

Accepted Answer

A)  decision tree. 
B)  decision matrix. 
C)  flowchart. 
D)  graph. 
A)  decision tree. 
B)  decision matrix. 
C)  flowchart. 
D)  graph. B

Question 3

When competing firms have a commitment strategy,it is called:

Accepted Answer

A)  collusion. 
B)  competitive cooperation. 
C)  predatory pricing. 
D)  competition. 
A)  collusion. 
B)  competitive cooperation. 
C)  predatory pricing. 
D)  competition. A

Question 4

A key to gaining cooperative behavior in a repeated game is:

Accepted Answer

A)  that the game must be repeated indefinitely. 
B)  there must be a definitive end to the game. 
C)  the players must commit to always acting in their own self-interest. 
D)  at least one player must have a dominant strategy. 
A)  that the game must be repeated indefinitely. 
B)  there must be a definitive end to the game. 
C)  the players must commit to always acting in their own self-interest. 
D)  at least one player must have a dominant strategy.

Question 5

When the trade-offs you face are determined by the choices someone else will make,behaving rationally involves:

Accepted Answer

A)  behaving strategically. 
B)  ignoring the behavior of other actors. 
C)  acting in a way to help others. 
D)  All of these statements are true. 
A)  behaving strategically. 
B)  ignoring the behavior of other actors. 
C)  acting in a way to help others. 
D)  All of these statements are true.

Question 6

If Nike and Adidas are faced with the game in the figure shown,we can predict:

Accepted Answer

A)  an outcome that is good for society and less than ideal for the companies. 
B)  an outcome that is less than ideal for society, but optimal for the companies. 
C)  that both will follow their dominant strategy and society will lose. 
D)  None of these is likely to happen. 
A)  an outcome that is good for society and less than ideal for the companies. 
B)  an outcome that is less than ideal for society, but optimal for the companies. 
C)  that both will follow their dominant strategy and society will lose. 
D)  None of these is likely to happen.

Question 7

The game in the figure shown is a version of:

Accepted Answer

A)  a sequential game. 
B)  a simultaneous game. 
C)  a cooperative game. 
D)  an ultimatum. 
A)  a sequential game. 
B)  a simultaneous game. 
C)  a cooperative game. 
D)  an ultimatum.

Question 8

If you are following a tit-for-tat strategy in a repeated game,and your opponent makes a cooperative move,you will:

Accepted Answer

A)  collude. 
B)  make a cooperative move in the next round. 
C)  price compete. 
D)  defect. 
A)  collude. 
B)  make a cooperative move in the next round. 
C)  price compete. 
D)  defect.

Question 9

This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts.Both companies are trying to decide whether or not to expand in an area.The area can handle only one of them expanding,and whoever expands will cause the other to lose some business.If they both expand,the market will be saturated,and neither company will do well.The payoffs are the additional profits (or losses)they will earn.
The game in the figure shown is a version of:

Accepted Answer

A)  the prisoner's dilemma. 
B)  the first-mover advantage. 
C)  a sequential game. 
D)  a repeated game. 
A)  the prisoner's dilemma. 
B)  the first-mover advantage. 
C)  a sequential game. 
D)  a repeated game.

Question 10

All games involve which of the following?

Accepted Answer

A)  A predictable outcome 
B)  Payoffs 
C)  Full information 
D)  A game master 
A)  A predictable outcome 
B)  Payoffs 
C)  Full information 
D)  A game master

Question 11

The process of analyzing a problem in reverse-starting with the last choice,then the second-to-last choice,and so on,to determine the optimal strategy-is called:

Accepted Answer

A)  backward induction. 
B)  backward thinking. 
C)  forward thinking. 
D)  backward working. 
A)  backward induction. 
B)  backward thinking. 
C)  forward thinking. 
D)  backward working.

Question 12

In the prisoner's dilemma game:

Accepted Answer

A)  neither player has a dominant strategy. 
B)  both players have a dominant strategy. 
C)  only one player will ever have a dominant strategy. 
D)  All of these may be true in a prisoner's dilemma game. 
A)  neither player has a dominant strategy. 
B)  both players have a dominant strategy. 
C)  only one player will ever have a dominant strategy. 
D)  All of these may be true in a prisoner's dilemma game.

Question 13

This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade.They both will enjoy a higher grade when more effort is put into the project,but they also get pleasure from goofing off and not working on the project.The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.
If Sarah and Joe are working on a project together and faced with the choices outlined in the figure shown,we can predict the outcome will be that:

Accepted Answer

A)  both Joe and Sarah put forth low effort. 
B)  Joe will put forth high effort, and Sarah will put forth low effort. 
C)  Joe will put forth low effort, and Sarah will put forth high effort. 
D)  both Joe and Sarah put forth high effort. 
A)  both Joe and Sarah put forth low effort. 
B)  Joe will put forth high effort, and Sarah will put forth low effort. 
C)  Joe will put forth low effort, and Sarah will put forth high effort. 
D)  both Joe and Sarah put forth high effort.

Question 14

When businesses cooperate and agree to hold prices high,it is called ____________,and when they reach a noncooperative equilibrium it is called _______________.

Accepted Answer

A)  collusion; competition 
B)  competition; collusion 
C)  commitment strategy; collusion 
D)  collusion; commitment strategy 
A)  collusion; competition 
B)  competition; collusion 
C)  commitment strategy; collusion 
D)  collusion; commitment strategy

Question 15

This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts.Both companies are trying to decide whether or not to expand in an area.The area can handle only one of them expanding,and whoever expands will cause the other to lose some business.If they both expand,the market will be saturated,and neither company will do well.The payoffs are the additional profits (or losses)they will earn.
According to the figure shown,Dunkin Donuts:

Accepted Answer

A)  should expand, regardless of what Starbucks chooses to do. 
B)  should not expand, regardless of what Starbucks chooses to do. 
C)  has first-mover advantage. 
D)  does not have a dominant strategy. 
A)  should expand, regardless of what Starbucks chooses to do. 
B)  should not expand, regardless of what Starbucks chooses to do. 
C)  has first-mover advantage. 
D)  does not have a dominant strategy.

Question 16

Behaving strategically means:

Accepted Answer

A)  evaluating decisions in which players act in their own self-interest, but the interplay of those decisions does not exist. 
B)  acting to achieve a goal by withholding key information from the person with whom an exchange is being made. 
C)  acting to achieve a goal by anticipating the interplay between your own and others' decisions. 
D)  evaluating the impact of your choices on an uninvolved third party. 
A)  evaluating decisions in which players act in their own self-interest, but the interplay of those decisions does not exist. 
B)  acting to achieve a goal by withholding key information from the person with whom an exchange is being made. 
C)  acting to achieve a goal by anticipating the interplay between your own and others' decisions. 
D)  evaluating the impact of your choices on an uninvolved third party.

Question 17

A decision matrix:

Accepted Answer

A)  summarizes the players, strategies, and payoffs associated with a game. 
B)  outlines the clear outcome of any strategy-based game. 
C)  shows only the decisions of one player. 
D)  is not useful in evaluating the strategic choices. 
A)  summarizes the players, strategies, and payoffs associated with a game. 
B)  outlines the clear outcome of any strategy-based game. 
C)  shows only the decisions of one player. 
D)  is not useful in evaluating the strategic choices.

Question 18

If Nike and Adidas are faced with the game in the figure,we can see that:

Accepted Answer

A)  Nike has a dominant strategy, but Adidas does not. 
B)  Adidas has a dominant strategy, but Nike does not. 
C)  Neither company has a dominant strategy. 
D)  Both companies have a dominant strategy. 
A)  Nike has a dominant strategy, but Adidas does not. 
B)  Adidas has a dominant strategy, but Nike does not. 
C)  Neither company has a dominant strategy. 
D)  Both companies have a dominant strategy.

Question 19

___________ is a winning strategy in a game of bargaining.

Accepted Answer

A)  First-mover advantage 
B)  Patience 
C)  Cooperation 
D)  Self-interested behavior 
A)  First-mover advantage 
B)  Patience 
C)  Cooperation 
D)  Self-interested behavior

Question 20

Games that don't have a dominant strategy:

Accepted Answer

A)  do not have stable equilibrium outcomes. 
B)  may have stable equilibrium outcomes. 
C)  always have stable equilibrium outcomes. 
D)  don't exist; all games have at least one dominant strategy. 
A)  do not have stable equilibrium outcomes. 
B)  may have stable equilibrium outcomes. 
C)  always have stable equilibrium outcomes. 
D)  don't exist; all games have at least one dominant strategy.

Cooperation in prisoner's dilemma-type games:

The figure shown portrays a game using a:

When competing firms have a commitment strategy,it is called:

A key to gaining cooperative behavior in a repeated game is:

When the trade-offs you face are determined by the choices someone else will make,behaving rationally involves:

If Nike and Adidas are faced with the game in the figure shown,we can predict:

The game in the figure shown is a version of:

If you are following a tit-for-tat strategy in a repeated game,and your opponent makes a cooperative move,you will:

All games involve which of the following?

The process of analyzing a problem in reverse-starting with the last choice,then the second-to-last choice,and so on,to determine the optimal strategy-is called:

In the prisoner's dilemma game:

When businesses cooperate and agree to hold prices high,it is called ,and when they reach a noncooperative equilibrium it is called ___.

Behaving strategically means:

A decision matrix:

If Nike and Adidas are faced with the game in the figure,we can see that:

___________ is a winning strategy in a game of bargaining.

Games that don't have a dominant strategy:

Economics and Life

Specialization and Exchange

Markets

Elasticity

Efficiency

Government Intervention Microeconomics

Consumer Behavior

Behavioral Economics: A Closer Look at Decision Making

Information

Time and Uncertainty

The Costs of Production

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

The Factors of Production

International Trade

Externalities

Public Goods and Common Resources

Taxation and the Public Budget

Poverty, Inequality, and Discrimination

Political Choices

Public Policy and Choice Architecture

Filters

Exam 9: Game Theory and Strategic Thinking

Cooperation in prisoner's dilemma-type games:

The figure shown portrays a game using a:

When competing firms have a commitment strategy,it is called:

A key to gaining cooperative behavior in a repeated game is:

When the trade-offs you face are determined by the choices someone else will make,behaving rationally involves:

If Nike and Adidas are faced with the game in the figure shown,we can predict:

The game in the figure shown is a version of:

If you are following a tit-for-tat strategy in a repeated game,and your opponent makes a cooperative move,you will:

All games involve which of the following?

The process of analyzing a problem in reverse-starting with the last choice,then the second-to-last choice,and so on,to determine the optimal strategy-is called:

In the prisoner's dilemma game:

When businesses cooperate and agree to hold prices high,it is called ____________,and when they reach a noncooperative equilibrium it is called _______________.

Behaving strategically means:

A decision matrix:

If Nike and Adidas are faced with the game in the figure,we can see that:

___________ is a winning strategy in a game of bargaining.

Games that don't have a dominant strategy:

Economics and Life

Specialization and Exchange

Markets

Elasticity

Efficiency

Government Intervention Microeconomics

Consumer Behavior

Behavioral Economics: A Closer Look at Decision Making

Information

Time and Uncertainty

The Costs of Production

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

The Factors of Production

International Trade

Externalities

Public Goods and Common Resources

Taxation and the Public Budget

Poverty, Inequality, and Discrimination

Political Choices

Public Policy and Choice Architecture

Filters

When businesses cooperate and agree to hold prices high,it is called ,and when they reach a noncooperative equilibrium it is called ___.