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