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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) Daniel Kahneman and Amos Tversky.
C) Kenneth Arrow and George Stigler.
D) John Nash and Roger Myerson.
  • 3. In cooperative games, what is the core?
A) A stable outcome without any external enforcement.
B) The basic strategy that guarantees a win.
C) An allocation accepted by all players without negotiation.
D) The set of feasible allocations that cannot be improved upon by any coalition.
  • 4. What does ‘best response’ mean in game theory?
A) The most conservative choice.
B) The strategy that ensures a win every time.
C) Any strategy that players prefer.
D) The strategy that yields the highest payoff given the other players' strategies.
  • 5. 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.
  • 6. Who introduced the concept of game theory in economics?
A) David Ricardo.
B) Milton Friedman.
C) John Von Neumann.
D) Adam Smith.
  • 7. What does 'subgame perfect equilibrium' refer to?
A) A situation where players cannot change their strategies.
B) An outcome determined by chance.
C) An equilibrium that exists only in finite games.
D) An equilibrium where players' strategies are optimal in every subgame.
  • 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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