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