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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) Zero-sum game.
C) Public goods game.
D) Evolutionary game.
  • 2. Who are the authors of the book 'Theory of Games and Economic Behavior'?
A) Daniel Kahneman and Amos Tversky.
B) John Von Neumann and Oskar Morgenstern.
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 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 equilibrium where players' strategies are optimal in every subgame.
D) An outcome determined by chance.
  • 5. Who introduced the concept of game theory in economics?
A) Adam Smith.
B) David Ricardo.
C) John Von Neumann.
D) Milton Friedman.
  • 6. What is a 'Pareto efficient' outcome?
A) An outcome where players always get equal benefits.
B) An allocation where no player can be made better off without making another player worse off.
C) An optimal outcome only for one player.
D) A game that always ends in a tie.
  • 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) Any strategy that players prefer.
B) The strategy that ensures a win every time.
C) The strategy that yields the highest payoff given the other players' strategies.
D) The most conservative choice.
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