Game theory - Test
  • 1. Which branch of economic theory specifically analyzes multi-agent interactions?
A) General equilibrium theory
B) Mechanism design theory
C) Game theory
D) Decision theory
  • 2. What is the primary focus of decision theory?
A) Macroeconomic trade
B) Single-player scenarios
C) Rule creation
D) Multi-agent interactions
  • 3. How does mechanism design theory differ from game theory?
A) It ignores individual preferences
B) It avoids incentive modeling
C) It only addresses single-player scenarios
D) It focuses on the consequences of different rules
  • 4. What is a 'metagame' in the context of game theory and mechanism design?
A) A game played by a single agent
B) A game that aims to develop rules for a subject game
C) A purely descriptive econometric model
D) A game with no defined rules
  • 5. What subject is explicitly listed as a focus area within mechanism design?
A) Static environmental constraints
B) Historical data trends
C) Auctions
D) Single-objective optimization
  • 6. What is the main concern of general equilibrium economists?
A) Metagame analysis
B) Macroeconomic issues of trade and production
C) Individual agent belief formation
D) Single-player preference formation
  • 7. What does DSGE stand for?
A) Dynamic stochastic general equilibrium
B) Decision-based strategic game evaluation
C) Dual-system game environment
D) Direct simulation of general equilibrium
  • 8. How does game theory differ from traditional econometric models?
A) It focuses on static environments
B) It relies solely on historical data
C) It accounts for strategic interactions
D) It is purely descriptive
  • 9. Which methodology is often used to replicate market dynamics through reward-punishment mechanisms?
A) Agent-based modeling
B) Decision analysis
C) Traditional econometrics
D) Static optimization algorithms
  • 10. What limitation do optimization algorithms have according to the text?
A) They assume static environments
B) They analyze strategic interactions
C) They focus on multiple stakeholders
D) They are too dynamic
  • 11. What is the primary field of study of game theory?
A) Organic biology
B) Theoretical physics
C) Applied mathematics
D) Pure chemistry
  • 12. What is the acronym used by Eric Rasmusen to describe the four essential elements of a game?
A) PAPI
B) GAMES
C) PLAY
D) STRAT
  • 13. Which mathematical theorem did John von Neumann use to build the foundations of game theory?
A) Fundamental theorem of calculus
B) Bayes' theorem
C) Pythagorean theorem
D) Brouwer fixed-point theorem
  • 14. In which year did John Nash, John Harsanyi, and Reinhard Selten win the Nobel Prize in economics?
A) 2012
B) 1944
C) 2005
D) 1994
  • 15. What is the term for the value a player receives for a strategy?
A) Profit
B) Utility outcome
C) Revenue
D) Payoff
  • 16. Which of the following is NOT an element of PAPI?
A) The environment
B) The players
C) The information
D) The choices
  • 17. Game theory has been applied to help understand which type of behavior in philosophy?
A) Deviant behavior
B) Irrational behavior
C) Ethical or normative behavior
D) Biological behavior
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