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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) 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) 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 basic strategy that guarantees a win.
B) An allocation accepted by all players without negotiation.
C) The set of feasible allocations that cannot be improved upon by any coalition.
D) A stable outcome without any external enforcement.
  • 4. What does ‘best response’ mean in game theory?
A) The strategy that yields the highest payoff given the other players' strategies.
B) The most conservative choice.
C) Any strategy that players prefer.
D) The strategy that ensures a win every time.
  • 5. What is a 'Pareto efficient' outcome?
A) An outcome where players always get equal benefits.
B) A game that always ends in a tie.
C) An allocation where no player can be made better off without making another player worse off.
D) An optimal outcome only for one player.
  • 6. Who introduced the concept of game theory in economics?
A) Adam Smith.
B) Milton Friedman.
C) John Von Neumann.
D) David Ricardo.
  • 7. What does 'subgame perfect equilibrium' refer to?
A) A situation where players cannot change their strategies.
B) An equilibrium where players' strategies are optimal in every subgame.
C) An equilibrium that exists only in finite games.
D) An outcome determined by chance.
  • 8. What is a strictly dominated strategy?
A) A strategy that cannot be improved upon.
B) A strategy that is better in some cases and worse in others.
C) A strategy that is worse than another strategy for every possible action of the other players.
D) A strategy that is randomly chosen.
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