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Theory of Games and Economic Behavior by John Von Neumann - Exam
Contributed by: Casey
  • 1. Which of the following is a type of game that has a clear conflict of interest?
A) Cooperative game.
B) Public goods game.
C) Zero-sum game.
D) Evolutionary game.
  • 2. Who are the authors of the book 'Theory of Games and Economic Behavior'?
A) John Von Neumann and Oskar Morgenstern.
B) Kenneth Arrow and George Stigler.
C) John Nash and Roger Myerson.
D) Daniel Kahneman and Amos Tversky.
  • 3. In cooperative games, what is the core?
A) An allocation accepted by all players without negotiation.
B) The set of feasible allocations that cannot be improved upon by any coalition.
C) A stable outcome without any external enforcement.
D) The basic strategy that guarantees a win.
  • 4. 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.
  • 5. Who introduced the concept of game theory in economics?
A) Adam Smith.
B) David Ricardo.
C) Milton Friedman.
D) John Von Neumann.
  • 6. 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.
  • 7. What is a strictly dominated strategy?
A) A strategy that is randomly chosen.
B) A strategy that is better in some cases and worse in others.
C) A strategy that cannot be improved upon.
D) A strategy that is worse than another strategy for every possible action of the other players.
  • 8. What does ‘best response’ mean in game theory?
A) The strategy that ensures a win every time.
B) The strategy that yields the highest payoff given the other players' strategies.
C) Any strategy that players prefer.
D) The most conservative choice.
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