Question 1

Refer to the game between James and Theodore depicted in Figure 12.1.Which of the following is true?

Accepted Answer

A)  James's dominant strategy is to choose Up. 
B)  James's dominant strategy is to choose Down. 
C)  Theodore's dominant strategy is to choose Left. 
D)  Theodore's dominant strategy is to choose Right. 
A)  James's dominant strategy is to choose Up. 
B)  James's dominant strategy is to choose Down. 
C)  Theodore's dominant strategy is to choose Left. 
D)  Theodore's dominant strategy is to choose Right.

Question 2

Refer to Figure 12.2.How many Nash equilibriums are there?

Accepted Answer

A)  0 
B)  1 
C)  2 
D)  3 
A)  0 
B)  1 
C)  2 
D)  3

Question 3

Playing the equilibrium of a one-stage game over and over again when the one-stage game is repeated is:

Accepted Answer

A)  always a Nash equilibrium. 
B)  only a Nash equilibrium if the game is finite. 
C)  only a Nash equilibrium if the game is infinite. 
D)  dominated in some cases. 
A)  always a Nash equilibrium. 
B)  only a Nash equilibrium if the game is finite. 
C)  only a Nash equilibrium if the game is infinite. 
D)  dominated in some cases.

Question 4

Refer to Figure d,which illustrates a game played by Travis and Darren.Darren's dominant strategy is:

Accepted Answer

A)  East. 
B)  West. 
C)  neither East nor West because East is only weakly dominated. 
D)  both East and West. 
A)  East. 
B)  West. 
C)  neither East nor West because East is only weakly dominated. 
D)  both East and West.

Question 5

A best response function:

Accepted Answer

A)  is also known as a strategic demand function. 
B)  is upward-sloping if free riding occurs. 
C)  shows the relationship between a player's choice and another player's best response. 
D)  plots all of the Nash equilibriums in a game. 
A)  is also known as a strategic demand function. 
B)  is upward-sloping if free riding occurs. 
C)  shows the relationship between a player's choice and another player's best response. 
D)  plots all of the Nash equilibriums in a game.

Question 6

Reputations:

Accepted Answer

A)  are generally not important in economic decisions. 
B)  influence a wide variety of important economic decisions. 
C)  represent manifestations of the winner's curse. 
D)  always lead to Nash disequilibriums. 
A)  are generally not important in economic decisions. 
B)  influence a wide variety of important economic decisions. 
C)  represent manifestations of the winner's curse. 
D)  always lead to Nash disequilibriums.

Question 7

Cooperation:

Accepted Answer

A)  is sustained by the threat of punishment for bad behavior. 
B)  is sustained by the promise of punishment for good behavior. 
C)  can be established even if threats/promises are not credible. 
D)  All of these are true about cooperation. 
A)  is sustained by the threat of punishment for bad behavior. 
B)  is sustained by the promise of punishment for good behavior. 
C)  can be established even if threats/promises are not credible. 
D)  All of these are true about cooperation.

Question 8

Refer to Figure a.Charlie and Joe both want to ride shotgun with their mother,so they play a game of rock-paper-scissors to determine who gets to sit in the front seat.In the table,-1 represents a loss,1 a win and 0 a tie,and Joe's payoff is shown in the upper left-hand corner of each cell,while Charlie's appears in the lower right-hand corner.What is the Nash equilibrium?

Accepted Answer

A)  Charlie chooses rock, Joe chooses rock 
B)  Charlie chooses rock, Joe chooses paper 
C)  Charlie chooses paper, Joe chooses scissors 
D)  There is no Nash equilibrium. 
A)  Charlie chooses rock, Joe chooses rock 
B)  Charlie chooses rock, Joe chooses paper 
C)  Charlie chooses paper, Joe chooses scissors 
D)  There is no Nash equilibrium.

Question 9

Refer to Figure a.Charlie and Joe both want to ride shotgun with their mother,so they play a game of rock-paper-scissors to determine who gets to sit in the front seat.If -1 represents a loss,1 a win and 0 a tie,and Joe's payoff is shown in the upper left-hand corner of each cell,while Charlie's appears in the lower right-hand corner,which set of rules is illustrated in the following payoff matrix?

Accepted Answer

A)  Rock tears paper, paper covers scissors, scissors clip rock 
B)  Rock crushes scissors, scissors cuts paper, paper covers rock 
C)  Rock crushes scissors, scissors cuts paper, scissors clip rock 
D)  Rock tears paper, paper covers scissors, paper covers rock 
A)  Rock tears paper, paper covers scissors, scissors clip rock 
B)  Rock crushes scissors, scissors cuts paper, paper covers rock 
C)  Rock crushes scissors, scissors cuts paper, scissors clip rock 
D)  Rock tears paper, paper covers scissors, paper covers rock

Question 10

Suppose Dean and Kennedy are playing a single stage game.Each simultaneously chooses either 1 or 2.If they both select 1,Dean pays Kennedy $2.If they both pick 2,Dean pays Kennedy $4.If they select different numbers,Kennedy pays Dean $3.Draw a table showing the two players' strategies and payoffs.Are any strategies dominant? Weakly dominant? Dominated? Solve for a mixed strategy equilibrium.

Accepted Answer

The payoff matrix should appear as follo

Question 11

Use the concepts of reputation and asymmetric information to explain why some faculty members become less productive after gaining tenure.

Accepted Answer

Asymmetric information exists when all p

Question 12

Which of the following is true about games in which people have different information?

Accepted Answer

A)  The behavior of the participants in the game reveals little to no information. 
B)  Participants in these games can sometimes have an incentive to mislead others through their behavior. 
C)  Participants in these games always act in a way contrary to his immediate interests. 
D)  These games never have a Nash equilibrium. 
A)  The behavior of the participants in the game reveals little to no information. 
B)  Participants in these games can sometimes have an incentive to mislead others through their behavior. 
C)  Participants in these games always act in a way contrary to his immediate interests. 
D)  These games never have a Nash equilibrium.

Question 13

A player is playing a pure strategy when:

Accepted Answer

A)  he chooses a rule to randomize over the choice of a strategy. 
B)  he chooses a strategy without randomizing. 
C)  there is uncertainty in his choice. 
D)  it is not perfectly predictable. 
A)  he chooses a rule to randomize over the choice of a strategy. 
B)  he chooses a strategy without randomizing. 
C)  there is uncertainty in his choice. 
D)  it is not perfectly predictable.

Question 14

Refer to the game between James and Theodore depicted in Figure 12.1.Which of the following is true?

Accepted Answer

A)  If James chooses Up, Theodore's best response is to choose Left. 
B)  If James chooses Down, Theodore's best response is to choose Right. 
C)  If Theodore chooses Left, James's best response is to choose Down. 
D)  If Theodore chooses Right, James's best response is to choose Up. 
A)  If James chooses Up, Theodore's best response is to choose Left. 
B)  If James chooses Down, Theodore's best response is to choose Right. 
C)  If Theodore chooses Left, James's best response is to choose Down. 
D)  If Theodore chooses Right, James's best response is to choose Up.

Question 15

Refer to the game between James and Theodore depicted in Figure 12.1.Which of the following is true?

Accepted Answer

A)  If James chooses Up, Theodore's best response is to choose Left. 
B)  If James chooses Down, Theodore's best response is to choose Left. 
C)  If Theodore chooses Left, James's best response is to choose Up. 
D)  If Theodore chooses Right, James's best response is to choose Up. 
A)  If James chooses Up, Theodore's best response is to choose Left. 
B)  If James chooses Down, Theodore's best response is to choose Left. 
C)  If Theodore chooses Left, James's best response is to choose Up. 
D)  If Theodore chooses Right, James's best response is to choose Up.

Question 16

Refer to Figure e.Brandon and Allie want to go on a date one summer evening.Allie is a Red Sox fan,while Brandon is a Mets fan.Both teams are playing that evening,but not against each other.Each would rather watch their favorite team,but neither can force the other to watch a particular game,and each is willing to suffer through the other's game if it means time together.What is the Nash equilibrium?

Accepted Answer

A)  Allie watches the Red Sox, and Brandon watches the Mets. 
B)  Allie and Brandon both watch the Red Sox. 
C)  Allie and Brandon both watch the Mets. 
D)  Allie and Brandon both watch the Red Sox or Allie and Brandon both watch the Mets. 
A)  Allie watches the Red Sox, and Brandon watches the Mets. 
B)  Allie and Brandon both watch the Red Sox. 
C)  Allie and Brandon both watch the Mets. 
D)  Allie and Brandon both watch the Red Sox or Allie and Brandon both watch the Mets.

Question 17

Refer to Figure e.Brandon and Allie want to go on a date one summer evening.Allie is a Red Sox fan,while Brandon is a Mets fan.Both teams are playing that evening,but not against each other.Each would rather watch their favorite team,but neither can force the other to watch a particular game,and each is willing to suffer through the other's game if it means time together.If Brandon watches the Mets,what is Allie's best response?

Accepted Answer

A)  Allie should watch the Red Sox. 
B)  Allie should watch the Mets. 
C)  It does not matter which Allie watches; she is indifferent between the Red Sox and the Mets. 
D)  Allie should not consider Brandon's choice when making her decision. 
A)  Allie should watch the Red Sox. 
B)  Allie should watch the Mets. 
C)  It does not matter which Allie watches; she is indifferent between the Red Sox and the Mets. 
D)  Allie should not consider Brandon's choice when making her decision.

Question 18

A repeated game:

Accepted Answer

A)  can be finite or infinite. 
B)  is formed by playing a simpler game many times in succession. 
C)  is a multiple-stage game. 
D)  All of these are true about repeated games. 
A)  can be finite or infinite. 
B)  is formed by playing a simpler game many times in succession. 
C)  is a multiple-stage game. 
D)  All of these are true about repeated games.

Question 19

Refer to the game between James and Theodore depicted in Figure 12.2.Which of the following is true?

Accepted Answer

A)  If James chooses Up, Theodore's best response is to choose Right. 
B)  If James chooses Down, Theodore's best response is to choose Left. 
C)  If Theodore chooses Left, James's best response is to choose Down. 
D)  If Theodore chooses Right, James's best response is to choose Down. 
A)  If James chooses Up, Theodore's best response is to choose Right. 
B)  If James chooses Down, Theodore's best response is to choose Left. 
C)  If Theodore chooses Left, James's best response is to choose Down. 
D)  If Theodore chooses Right, James's best response is to choose Down.

Question 20

Refer to the game between James and Theodore depicted in Figure 12.1.Who has a dominant strategy?

Accepted Answer

A)  Only James 
B)  Only Theodore 
C)  Both James and Theodore 
D)  Neither James nor Theodore 
A)  Only James 
B)  Only Theodore 
C)  Both James and Theodore 
D)  Neither James nor Theodore

Refer to the game between James and Theodore depicted in Figure 12.1.Which of the following is true?

Refer to Figure 12.2.How many Nash equilibriums are there?

Playing the equilibrium of a one-stage game over and over again when the one-stage game is repeated is:

Refer to Figure d,which illustrates a game played by Travis and Darren.Darren's dominant strategy is:

A best response function:

Reputations:

Cooperation:

Use the concepts of reputation and asymmetric information to explain why some faculty members become less productive after gaining tenure.

Which of the following is true about games in which people have different information?

A player is playing a pure strategy when:

Refer to the game between James and Theodore depicted in Figure 12.1.Which of the following is true?

Refer to the game between James and Theodore depicted in Figure 12.1.Which of the following is true?

A repeated game:

Refer to the game between James and Theodore depicted in Figure 12.2.Which of the following is true?

Refer to the game between James and Theodore depicted in Figure 12.1.Who has a dominant strategy?

Introduction

Supply and Demand

Balancing Benefits and Costs

Consumer Preferences

Constraints, Choices, and Demand

Demand and Welfare

Technology and Production

Cost

Profit Maximization

Choices Involving Time

Choices Involving Risk

Behavioral Economics

Equilibrium and Efficiency

Market Intervention

General Equilibrium, Efficiency, and Equity

Monopoly

Pricing Policies

Oligopoly

Externalities and Public Goods

Asymmetric Information

Filters

Exam 12: Choices Involving Strategy

Refer to the game between James and Theodore depicted in Figure 12.1.Which of the following is true?

Refer to Figure 12.2.How many Nash equilibriums are there?

Playing the equilibrium of a one-stage game over and over again when the one-stage game is repeated is:

Refer to Figure d,which illustrates a game played by Travis and Darren.Darren's dominant strategy is:

A best response function:

Reputations:

Cooperation:

Use the concepts of reputation and asymmetric information to explain why some faculty members become less productive after gaining tenure.

Which of the following is true about games in which people have different information?

A player is playing a pure strategy when:

Refer to the game between James and Theodore depicted in Figure 12.1.Which of the following is true?

Refer to the game between James and Theodore depicted in Figure 12.1.Which of the following is true?

A repeated game:

Refer to the game between James and Theodore depicted in Figure 12.2.Which of the following is true?

Refer to the game between James and Theodore depicted in Figure 12.1.Who has a dominant strategy?

Introduction

Supply and Demand

Balancing Benefits and Costs

Consumer Preferences

Constraints, Choices, and Demand

Demand and Welfare

Technology and Production

Cost

Profit Maximization

Choices Involving Time

Choices Involving Risk

Behavioral Economics

Equilibrium and Efficiency

Market Intervention

General Equilibrium, Efficiency, and Equity

Monopoly

Pricing Policies

Oligopoly

Externalities and Public Goods

Asymmetric Information

Filters