Question 1

A noncooperative equilibrium is one in which:

Accepted Answer

A)  the participants act independently,pursuing only their individual interests.
B)  always results in a negative-negative outcome.
C)  will only be reached if a dominant strategy exists for both players.
D)  All of these statements are true.E) None of the above
F) A) and C)

Question 2

Games that don't have a dominant strategy present:

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.E) A) and D)
F) None of the above

Question 3

The players of prisoner's dilemma-type games:

Accepted Answer

A)  would be much better off if they could cooperate.
B)  have an incentive to never cooperate.
C)  have a dominant strategy to never cooperate.
D)  All of these statements are true.E) All of the above
F) B) and D)

Question 4

Using a commitment strategy in:

Accepted Answer

A)  a simultaneous game can alter payoffs,but has no effect in sequential games.
B)  a simultaneous game has no effect,but can alter the payoffs and outcome of sequential games.
C)  either a simultaneous or sequential game has little impact on payoffs or outcome.
D)  either a simultaneous or sequential game can greatly alter the payoffs and outcome of the game.E) None of the above
F) All of the above

Question 5

If each player responds by imitating the action of his opponent in the previous round of a repeating game,the players are following a:

Accepted Answer

A)  tit-for-tat strategy.
B)  repeated cooperation agreement.
C)  collusion plan.
D)  commitment strategy.E) A) and B)
F) All of the above

Question 6

Game theory is:

Accepted Answer

A)  the study of how people behave strategically under different circumstances.
B)  used by economists to evaluate behavior in a variety of settings.
C)  a useful tool in predicting strategic behavior.
D)  All of these statements are true.E) All of the above
F) B) and C)

Question 7

To economists,games are:

Accepted Answer

A)  not just recreational pursuits like chess,Monopoly,or poker.
B)  any situation in which players pursue strategies designed to achieve their goals.
C)  can be a useful model when trying to predict the outcome to a variety of situations,from the environment to war.
D)  All of these statements are true.E) A) and D)
F) All of the above

Question 8

When all players in a game choose the best strategy they can,given the choices of all other players,it is always a:

Accepted Answer

A)  Nash equilibrium.
B)  positive-positive outcome.
C)  noncooperative equilibrium.
D)  negative-negative equilibrium.E) A) and C)
F) A) and B)

Question 9

When a strategy is the best one to follow no matter what strategy other players choose,it is called a:

Accepted Answer

A)  dominant strategy.
B)  golden decision.
C)  optimizing strategy.
D)  zero-sum strategy.E) All of the above
F) B) and C)

Question 10

The famous historical example of the commitment strategy used by Cortes against the Aztecs is sometimes referred to as:

Accepted Answer

A)  "burning your boats."
B)  "burning your bridges."
C)  "friendly fire."
D)  "putting all your eggs in one basket."E) None of the above
F) All of the above

Question 11

Behaving strategically means:

Accepted Answer

A)  acting to achieve a goal by anticipating the interplay between your own and others' decisions.
B)  evaluating decisions in which actors act in their own self-interest,and the interplay of those decisions does not exist.
C)  acting to achieve a goal by withholding key information from the person with whom an exchange is being made.
D)  evaluating the impact of your choices on a third party.E) B) and C)
F) None of the above

Question 12

A commitment strategy can:

Accepted Answer

A)  be used to change people's payoffs to gain cooperation.
B)  allow players to reach a mutually beneficial equilibrium that would otherwise be difficult to maintain.
C)  result in a positive-positive outcome.
D)  All of these statements are true.E) C) and D)
F) B) and C)

Question 13

While everyone wants a clean environment,it can be very hard to achieve.An approach governments could take to ensure we get that outcome is:

Accepted Answer

A)  create social norms.
B)  create and enforce strict laws and heavy fines.
C)  influence individual's incentives.
D)  All of these are ways governments get the "green" behavior we want.E) All of the above
F) B) and C)

Question 14

Economic games can be used to analyze decisions around which of the following situations?

Accepted Answer

A)  War
B)  Business
C)  Environmental protection
D)  Economic games can be used to analyze all of these.E) A) and C)
F) None of the above

Question 15

In repeated games:

Accepted Answer

A)  players no longer need commitment strategies to reach a mutually beneficial equilibrium.
B)  players will never reach a mutually beneficial equilibrium.
C)  there are no dominant strategies.
D)  negative-negative outcomes are the only outcomes possible.E) C) and D)
F) B) and D)

Question 16

Strategies and incentives:

Accepted Answer

A)  often work quite differently when games are repeated.
B)  work the same whether games are played once or repeated.
C)  do not change when the game is repeated.
D)  None of these statements is true.E) B) and D)
F) B) and C)

Question 17

All games involve which of the following?

Accepted Answer

A)  Strategies
B)  A clear outcome
C)  Cards or dice
D)  Full informationE) B) and C)
F) A) and D)

Question 18

Reaching a Nash equilibrium means that:

Accepted Answer

A)  the players have reached a stable outcome where neither of you would wish to change your strategy once you find out what the other player is doing.
B)  the outcome will be positive-positive.
C)  a cooperative equilibrium has been reached.
D)  the players have failed to reach a stable outcome because one player will always wish to change his strategy once he finds out what the other player is doing.E) A) and B)
F) A) and C)

Question 19

Games:

Accepted Answer

A)  don't need a dominant strategy present in order to reach an equilibrium outcome.
B)  may have noncooperative equilibriums that are positive-positive outcomes.
C)  may have several stable outcomes.
D)  All of these statements are true.E) A) and D)
F) B) and C)

Question 20

In games:

Accepted Answer

A)  there is only one strategy associated with each outcome desired.
B)  there are several strategies that can achieve a single,desired goal.
C)  all strategies followed in one particular game should all be similar to be successful.
D)  if one person's strategy is wildly different,he will typically come in first or last.E) B) and C)
F) C) and D)

Exam 9: Game Theory and Strategic Thinking

When a strategy is the best one to follow no matter what strategy other players choose,it is called a:

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Using a commitment strategy in:

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All games involve which of the following?

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A commitment strategy can:

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While everyone wants a clean environment,it can be very hard to achieve.An approach governments could take to ensure we get that outcome is:

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Games that don't have a dominant strategy present:

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Games:

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The players of prisoner's dilemma-type games:

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If each player responds by imitating the action of his opponent in the previous round of a repeating game,the players are following a:

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In games:

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A noncooperative equilibrium is one in which:

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Strategies and incentives:

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Reaching a Nash equilibrium means that:

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The famous historical example of the commitment strategy used by Cortes against the Aztecs is sometimes referred to as:

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Game theory is:

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In repeated games:

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Behaving strategically means:

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To economists,games are:

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When all players in a game choose the best strategy they can,given the choices of all other players,it is always a:

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Economic games can be used to analyze decisions around which of the following situations?

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