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Theory of Games and Economic Behavior by John Von Neumann
Contributed by: Casey
  • 1. Which of the following is a type of game that has a clear conflict of interest?
A) Evolutionary game.
B) Public goods game.
C) Zero-sum game.
D) Cooperative game.
  • 2. Who are the authors of the book 'Theory of Games and Economic Behavior'?
A) John Nash and Roger Myerson.
B) Daniel Kahneman and Amos Tversky.
C) John Von Neumann and Oskar Morgenstern.
D) Kenneth Arrow and George Stigler.
  • 3. In cooperative games, what is the core?
A) The basic strategy that guarantees a win.
B) The set of feasible allocations that cannot be improved upon by any coalition.
C) A stable outcome without any external enforcement.
D) An allocation accepted by all players without negotiation.
  • 4. What is a strictly dominated strategy?
A) A strategy that cannot be improved upon.
B) A strategy that is better in some cases and worse in others.
C) A strategy that is worse than another strategy for every possible action of the other players.
D) A strategy that is randomly chosen.
  • 5. What is a 'Pareto efficient' outcome?
A) An optimal outcome only for one player.
B) An allocation where no player can be made better off without making another player worse off.
C) A game that always ends in a tie.
D) An outcome where players always get equal benefits.
  • 6. Who introduced the concept of game theory in economics?
A) Adam Smith.
B) David Ricardo.
C) John Von Neumann.
D) Milton Friedman.
  • 7. What does 'subgame perfect equilibrium' refer to?
A) An equilibrium that exists only in finite games.
B) A situation where players cannot change their strategies.
C) An outcome determined by chance.
D) An equilibrium where players' strategies are optimal in every subgame.
  • 8. What does ‘best response’ mean in game theory?
A) The most conservative choice.
B) The strategy that yields the highest payoff given the other players' strategies.
C) The strategy that ensures a win every time.
D) Any strategy that players prefer.
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