Question 1

What is a prisoner's dilemma? Draw a payoff matrix which illustrates this game.

Accepted Answer

The prisoner's dilemma is a game in whic

Question 2

In an oligopoly game,the greater the number of players who are colluding:

Accepted Answer

A) the lower the possibility of cheating. 
B) the more elastic the demand curve of the cheater. 
C) the higher the payoff received by each player from colluding. 
D) the lower will be the profit from cheating. 
A) the lower the possibility of cheating. 
B) the more elastic the demand curve of the cheater. 
C) the higher the payoff received by each player from colluding. 
D) the lower will be the profit from cheating.

Question 3

Advertising is profitable for a firm when:

Accepted Answer

A) it increases search costs for the consumers of the firm's product. 
B) it raises the price of the good being advertised. 
C) it makes the demand for the firm's product more inelastic. 
D) it reduces the barriers to the entry of new firms. 
A) it increases search costs for the consumers of the firm's product. 
B) it raises the price of the good being advertised. 
C) it makes the demand for the firm's product more inelastic. 
D) it reduces the barriers to the entry of new firms.

Question 4

Karen hires a carpenter from a firm providing carpentry services,for remodeling the cabinets in her kitchen.She is unaware of the productivity of the carpenter who is sent by the firm.The carpenter,however,is perfectly aware of the labor hours required for the task.Which of the following problems is being faced by Karen in this situation?

Accepted Answer

A) A prisoner's dilemma 
B) The asymmetric information problem 
C) The moral hazard problem 
D) The tragedy of commons 
A) A prisoner's dilemma 
B) The asymmetric information problem 
C) The moral hazard problem 
D) The tragedy of commons

Question 5

To avoid getting a "lemon" house,buyers hire inspectors because:

Accepted Answer

A) the marginal benefit of getting a "lemon" house exceeds the inspector's fee. 
B) the marginal cost of getting a "lemon" house is lower than the inspector's fee. 
C) the marginal cost of not getting a "lemon" house is less than the inspector's fee. 
D) the marginal benefit of not getting a "lemon" house exceeds the inspector's fee. 
A) the marginal benefit of getting a "lemon" house exceeds the inspector's fee. 
B) the marginal cost of getting a "lemon" house is lower than the inspector's fee. 
C) the marginal cost of not getting a "lemon" house is less than the inspector's fee. 
D) the marginal benefit of not getting a "lemon" house exceeds the inspector's fee.

Question 6

Which of the following terms is used in the medical insurance industry to describe the percentage of the hospital bill borne by the patient?

Accepted Answer

A) Premium 
B) Deductible 
C) Coinsurance rate 
D) Coverage rate 
A) Premium 
B) Deductible 
C) Coinsurance rate 
D) Coverage rate

Question 7

Use the following table to answer the question : Table 14-2 : represents the payoff matrix of firms A and B,when they choose to produce low or high output.In each cell,the figure on the left indicates Firm B's payoffs and the figure on the right indicates Firm A's payoffs.
 
-Given the information in Table 14-2,which firm has a dominant strategy?

Accepted Answer

A) Firm A 
B) Firm B 
C) Both Firm A and Firm B 
D) Neither Firm A nor Firm B 
A) Firm A 
B) Firm B 
C) Both Firm A and Firm B 
D) Neither Firm A nor Firm B

Question 8

A repeated game is a game:

Accepted Answer

A) that is played simultaneously by different sets of players. 
B) that is played more than once,but under different rules each time. 
C) that is played more than once,by the same set of players. 
D) that is played by a different set of players each time. 
A) that is played simultaneously by different sets of players. 
B) that is played more than once,but under different rules each time. 
C) that is played more than once,by the same set of players. 
D) that is played by a different set of players each time.

What is a prisoner's dilemma? Draw a payoff matrix which illustrates this game.

In an oligopoly game,the greater the number of players who are colluding:

Advertising is profitable for a firm when:

To avoid getting a "lemon" house,buyers hire inspectors because:

Which of the following terms is used in the medical insurance industry to describe the percentage of the hospital bill borne by the patient?

A repeated game is a game:

An Introduction to Microeconomics

Supply and Demand

The Theory of Consumer Choice

Individual and Market Demand

Using Consumer Choice Theory

Exchange, Efficiency, and Prices

Production

The Cost of Production

Profit Maximization in Perfectly Competitive Markets

Using the Competitive Model

Monopoly

Product Pricing With Monopoly Power

Monopolistic Competition and Oligopoly

Using Noncompetitive Market Models

Employment and Pricing of Inputs

Wages, Rent, Interest, and Profit

Using Input Market Analysis

General Equilibrium Analysis and Economic Efficiency

Public Goods and Externalities

Filters

Exam 14: Game Theory and the Economics of Information

What is a prisoner's dilemma? Draw a payoff matrix which illustrates this game.

In an oligopoly game,the greater the number of players who are colluding:

Advertising is profitable for a firm when:

To avoid getting a "lemon" house,buyers hire inspectors because:

Which of the following terms is used in the medical insurance industry to describe the percentage of the hospital bill borne by the patient?

A repeated game is a game:

An Introduction to Microeconomics

Supply and Demand

The Theory of Consumer Choice

Individual and Market Demand

Using Consumer Choice Theory

Exchange, Efficiency, and Prices

Production

The Cost of Production

Profit Maximization in Perfectly Competitive Markets

Using the Competitive Model

Monopoly

Product Pricing With Monopoly Power

Monopolistic Competition and Oligopoly

Using Noncompetitive Market Models

Employment and Pricing of Inputs

Wages, Rent, Interest, and Profit

Using Input Market Analysis

General Equilibrium Analysis and Economic Efficiency

Public Goods and Externalities

Filters