Tackle the Test: Multiple-Choice Questions

1. Question

   Each player has an incentive to choose an action that, when both players choose it, makes them both worse off than if neither had chosen it. This situation describes

   A.

   a dominant strategy.

   B.

   the prisoners’ dilemma.

   C.

   interdependence.

   D.

   Nash equilibrium.

   E.

   game theory.

   Each player has an incentive to choose an action that, when both players choose it, makes them both worse off than if neither had chosen it. This situation describes

2. Question

   Which of the following is true of every Nash equilibrium?

   A.

   It is the only Nash equilibrium in the game.

   B.

   Neither player wants to independently change his or her strategy.

   C.

   It is also a dominant strategy equilibrium.

   D.

   Each player receives the same payoff.

   E.

   There is no better outcome in the payoff matrix for either player.

   Which of the following is true of every Nash equilibrium?

3. Question

   A situation in which each player in a game chooses the action that maximizes his or her payoff, given the actions of the other players, ignoring the effects of his or her action on the payoffs received by others, is known as a

   A.

   dominant strategy.

   B.

   cooperative equilibrium.

   C.

   Nash equilibrium.

   D.

   strategic situation.

   E.

   prisoners’ dilemma.

   A situation in which each player in a game chooses the action that maximizes his or her payoff, given the actions of the other players, ignoring the effects of his or her action on the payoffs received by others, is known as a

4. Question

   In the context of the Richard and Justin story in the module, suppose that Justin discovers Richard’s action (confess or don’t confess) before choosing his own action.

   

   Based on the payoff matrix provided, Justin will

   A.

   confess whether or not Richard confessed.

   B.

   not confess only if Richard confessed.

   C.

   not confess only if Richard didn’t confess.

   D.

   not confess regardless of whether or not Richard confessed.

   E.

   confess only if Richard did not confess.

   Based on the payoff matrix provided, Justin will
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   Question

   Which of the following is true on the basis of the payoff matrix provided in Question 4?

   A.

   Justin has no dominant strategy, but Richard does.

   B.

   Richard has no dominant strategy, but Justin does.

   C.

   Both Richard and Justin have a dominant strategy.

   D.

   Neither Richard nor Justin has a dominant strategy.

   E.

   Justin has a dominant strategy only if Richard confesses.

   Which of the following is true on the basis of the payoff matrix provided in Question 4?