ThatQuiz Test Library Take this test now
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) Evolutionary game.
B) Public goods game.
C) Cooperative game.
D) Zero-sum game.
  • 2. Who are the authors of the book 'Theory of Games and Economic Behavior'?
A) John Von Neumann and Oskar Morgenstern.
B) Daniel Kahneman and Amos Tversky.
C) John Nash and Roger Myerson.
D) Kenneth Arrow and George Stigler.
  • 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) The basic strategy that guarantees a win.
D) An allocation accepted by all players without negotiation.
  • 4. What is a strictly dominated strategy?
A) A strategy that is better in some cases and worse in others.
B) A strategy that cannot be improved upon.
C) A strategy that is randomly chosen.
D) A strategy that is worse than another strategy for every possible action of the other players.
  • 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) Adam Smith.
B) Milton Friedman.
C) John Von Neumann.
D) David Ricardo.
  • 7. 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) The strategy that ensures a win every time.
D) Any strategy that players prefer.
  • 8. What does 'subgame perfect equilibrium' refer to?
A) An equilibrium where players' strategies are optimal in every subgame.
B) An equilibrium that exists only in finite games.
C) An outcome determined by chance.
D) A situation where players cannot change their strategies.
Created with That Quiz — where test making and test taking are made easy for math and other subject areas.