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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) Public goods game.
B) Zero-sum game.
C) Cooperative game.
D) Evolutionary game.
  • 2. Who are the authors of the book 'Theory of Games and Economic Behavior'?
A) Kenneth Arrow and George Stigler.
B) John Von Neumann and Oskar Morgenstern.
C) Daniel Kahneman and Amos Tversky.
D) John Nash and Roger Myerson.
  • 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 '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 equilibrium that exists only in finite games.
D) An outcome determined by chance.
  • 5. Who introduced the concept of game theory in economics?
A) David Ricardo.
B) Adam Smith.
C) John Von Neumann.
D) Milton Friedman.
  • 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) A game that always ends in a tie.
C) An optimal outcome only for one player.
D) An outcome where players always get equal benefits.
  • 7. What is a strictly dominated strategy?
A) A strategy that is better in some cases and worse in others.
B) A strategy that is worse than another strategy for every possible action of the other players.
C) A strategy that cannot be improved upon.
D) A strategy that is randomly chosen.
  • 8. 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.
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