Question 1

Which of the following is an example of a real-life rule that might constrain people's behavior?
A)Minimum wage legislation
B)Having 24 hours in a day
C)The earth's limited supply of oil
D)All of these are examples of real-life rules.

Accepted Answer

All of these are examples of real-life rules that can constrain people's behavior. Minimum wage legislation sets a minimum wage that employers must pay their employees, which can affect the types of jobs that people are willing to take. The fact that there are only 24 hours in a day constrains the amount of time that people have available for work, leisure, and other activities. The earth's limited supply of oil constrains the amount of oil that people can use, which can affect the cost of transportation and other activities.

Question 2

In games, rules:
A)define the actions that are allowed.
B)need to be loosely adhered to in order to predict an outcome.
C)define the winners.
D)outline the wrong choices that could be made.

Accepted Answer

Rules in games primarily define the actions that are allowed, setting the framework within which the game operates.

Question 3

All games involve which of the following?
A)A predictable outcome
B)Payoffs
C)Full information
D)A game master

Accepted Answer

Games typically involve payoffs, which are the rewards or penalties received from making certain decisions or taking specific actions within the game. The other options (A, C, D) are not characteristics inherent to all games. For example, outcomes in games are often unpredictable, not all games require full information to be known to all players, and many games do not have a game master.

Question 4

The study of how people behave strategically under different circumstances is called:
A)game theory.
B)game strategy.
C)strategy optimization.
D)strategy theory.

Accepted Answer

Game theory is the study of mathematical models of strategic interaction among rational decision-makers. It is used in economics, political science, and psychology, among other disciplines, to understand and predict people's behavior in strategic situations.

Question 5

Game theory is:
A)used to analyze situations in which people behave strategically.
B)used to predict the winners of only certain types of strategic games.
C)used to evaluate microeconomic choices that involve probabilities of different outcomes.
D)the study of games of chance, like solitaire or betting on horse races.

Accepted Answer

Game theory is primarily concerned with analyzing situations where individuals or entities make strategic decisions that consider the actions and reactions of other participants. It is not limited to predicting winners of specific games, nor is it solely focused on microeconomic choices or games of chance.

Question 6

Behaving strategically means:
A)evaluating decisions in which players act in their own self-interest, but the interplay of those decisions does not exist.
B)acting to achieve you goal by withholding key information from the person with whom an exchange is being made.
C)acting to achieve your goals while anticipating the impact of others' choices on your own outcomes.
D)evaluating the impact of your choices on an uninvolved third party.

Accepted Answer

Strategic behavior involves acting to achieve one's goals while considering how others' decisions might affect those outcomes. This anticipatory aspect is crucial in strategic decision-making, where the interdependence of choices among players is a key factor.

Question 7

Which of the following is an example of a strategy in economic games?Studying an extra hour in order to do better on an examSelecting your next move in a game of chessChoosing to take piano lessons instead of violin lessons
A)I only
B)II only
C)I and III
D)II and III

Accepted Answer

Economic games typically involve strategic decision-making where the outcome depends on the choices of others. Selecting your next move in a game of chess is an example of strategic thinking in response to an opponent's potential actions, fitting the concept of strategy in economic games. The other options are personal choices not directly involving strategic interactions with others.

Question 8

Which of the following statements is true about strategy in economic games?
A)There is only one strategy associated with each outcome.
B)There could be several strategies that can achieve the same goal.
C)All strategies followed in one particular game should be similar in order to be successful.
D)If one person's strategy is wildly different from others' strategies, that person will either come in first or last.

Accepted Answer

There can indeed be multiple strategies that achieve the same goal in economic games, reflecting the complexity and variability of decision-making processes in these contexts. Different players might adopt different approaches based on their risk tolerance, information, or objectives, yet still arrive at similar outcomes.

Question 9

When your outcomes depend on another's choices, asking yourself _______ is the key to good decision making.
A)how others will respond
B)what the wants and constraints of those involved are
C)what the trade-offs are
D)why everyone isn't already doing it

Accepted Answer

The answer of When your outcomes depend on another's choices,...

Question 10

To economists, games:can involve one person or multiple people.require at least two people.are situations in which people act in another individual's interestare situations in which one player's outcome depends on another player's choices.
A)I and IV
B)II and IV
C)II only
D)I, III, and IV

Accepted Answer

Games in economics typically involve strategic interactions where the outcome for one player depends on the choices of others, requiring at least two people.

Question 11

In real life, people's behavior is constrained by the:
A)laws of nature.
B)legislated rules of society.
C)costs of various actions.
D)All of these are rules that constrain people's behavior.

Accepted Answer

All of these factors - laws of nature, legislated rules of society, and the costs of various actions - play a role in constraining people's behavior in real life.

Question 12

In games, strategies are:
A)the outcomes players want to achieve.
B)identical, as everyone wants to achieve the same goal.
C)the plans of action that players follow to achieve their goals.
D)All of these statements are true.

Accepted Answer

Strategies in games refer to the plans of action that players follow to achieve their desired outcomes or goals, not the outcomes themselves or the assumption that everyone has the same goal.

Question 13

Behaving strategically:
A)means recognizing that the actions of others will affect the trade-offs you face and acting accordingly.
B)is an essential part of game theory.
C)involves rational decision-making.
D)All of these statements are true.

Accepted Answer

All of the statements accurately describe aspects of strategic behavior. Strategic behavior involves recognizing how others' actions affect one's own choices (A), is a fundamental concept in game theory (B), and involves making decisions based on rational analysis (C).

Question 14

In a game in which a player's outcome depends on another player's choices, behaving rationally involves:
A)behaving strategically.
B)ignoring the behavior of other actors.
C)acting in a way to help others.
D)All of these statements are true.

Accepted Answer

Rational behavior in games involving interdependent outcomes requires players to behave strategically, considering the potential choices and responses of other players to maximize their own outcomes. Choices B and C do not align with the strategic aspect of rational behavior in such games.

Question 15

To economists, a game is:
A)any situation involving at least two players in which one player's outcome depends on another player's choices.
B)a trivial pursuit that should not be used to analyze the economy or its actors.
C)a way to simplify and eliminate strategic situations, like war between nations.
D)All of these statements are true.

Accepted Answer

A game, in economic terms, refers to any situation where the outcome for any player depends on the choices made by other players, highlighting the importance of strategic decision-making. This concept is fundamental in game theory, which is used to analyze various economic and strategic situations.

Question 16

All games involve which of the following?Multiple playersStrategiesPayoffs
A)I only
B)II and III only
C)I and II only
D)I, II, and III

Accepted Answer

All games involve multiple players, strategies, and payoffs as these are fundamental components of game theory.

Question 17

Game theory is:
A)the study of how people behave strategically under different circumstances.
B)used by economists to evaluate behavior in a variety of settings.
C)a useful tool in predicting strategic behavior.
D)All of these statements are true.

Accepted Answer

Game theory encompasses the study of strategic behavior in various circumstances, is widely used by economists to analyze behavior in diverse settings, and serves as a valuable tool for predicting strategic actions.

Question 18

All games involve which of the following?
A)Strategies
B)Someone to enforce the rules
C)Cards or dice
D)Full information

Accepted Answer

Games inherently involve strategies, as players must make decisions that affect the outcome.

Question 19

Economic games can be used to analyze decisions regarding which of the following areas of concern?
A)War
B)Business
C)Environmental protection
D)All of these can be analyzed using economic games.

Accepted Answer

Economic games are versatile tools that can be applied to a wide range of scenarios, including war, business, and environmental protection, to study decision-making processes and outcomes.

Question 20

All games involve which of the following?
A)Rules
B)Chance events
C)Dice
D)Cards

Accepted Answer

All games involve rules, which are the guidelines or instructions on how to play the game. Not all games involve chance events, dice, or cards.

Quiz 9: Game Theory and Strategic Thinking

Which of the following is an example of a real-life rule that might constrain people's behavior?

In games, rules:

All games involve which of the following?

The study of how people behave strategically under different circumstances is called:

Game theory is:

Behaving strategically means:

Which of the following is an example of a strategy in economic games?Studying an extra hour in order to do better on an examSelecting your next move in a game of chessChoosing to take piano lessons instead of violin lessons

Which of the following statements is true about strategy in economic games?

When your outcomes depend on another's choices, asking yourself _______ is the key to good decision making.

To economists, games:can involve one person or multiple people.require at least two people.are situations in which people act in another individual's interestare situations in which one player's outcome depends on another player's choices.

In real life, people's behavior is constrained by the:

In games, strategies are:

Behaving strategically:

In a game in which a player's outcome depends on another player's choices, behaving rationally involves:

To economists, a game is:

All games involve which of the following?Multiple playersStrategiesPayoffs

Game theory is:

All games involve which of the following?

Economic games can be used to analyze decisions regarding which of the following areas of concern?

All games involve which of the following?