Site MapHelpFeedbackMultiple Choice Quiz
Multiple Choice Quiz
(See related pages)

1.
The key feature that requires the use of game theory to comprehend behavior is
A)profit maximization.
B)limited information.
C)time.
D)utility maximization.
E)interdependency.
2.
The assumption that individuals act out of narrow self-interest is
A)a reasonable first approximation.
B)offensive.
C)rarely justified.
D)only justified for monetary decisions.
E)less justified today than 100 years ago.
3.
Which of the following is not a requirement of a game?
A)Players.
B)Payoffs.
C)Dominant strategies.
D)Strategies.
E)Knowledge of the payoffs.
4.
The prisoner's dilemma refers to games
A)involving criminals.
B)without dominant strategies.
C)without a Nash equilibrium.
D)with one dominant strategy.
E)where the playing of dominant strategies leads to a less desirable equilibrium.
5.
Which of the following problems would not require decision tree analysis?
A)A football player choosing between a new contract with his current club
B)A manager of a rural, isolated petrol station considering a price cut.
C)A married couple, both economists, choosing betweee an offer of a chair for him at Oxford and a chair for her in Sydney
D)Choosing a university to attend and course of study to pursue.
E)Negotiating the price of a new car.
6.
The statement "If you don't pay what you owe, then I will kill you" is a credible
A)threat when spoken by someone's mother.
B)promise when spoken by someone's bank manager.
C)threat when spoken by someone's significant other.
D)threat when spoken by one of someone's mafia partners.
E)promise when spoken by someone's paperboy.
7.
The residual demand curve for an oligopolist shows
A)The amount of the market left for the other firm or firms.
B)The demand for the oligopolist's output at any price.
C)The demand for the oligopolist's output given what the other firm or firms are producing.
D)What the oligopolist will produce if he can cover his costs.
E)The difference between the oligopolist's supply and market demand.
8.
In a Cournot duopoly a Nash equilibrium occurs
A)where the firms' reaction curves intersect.
B)at any level of output where the market is shared equally.
C)when one player supplies the entire market.
D)when each player's price is the best it can set given the payoffs from pricing decisions to the other player.
E)when the firms maximize their joint profits.
9.
The Bertrand paradox refers to
A)The fact that in equilibrium unit prices under Bertrand competition must always be the same for all players.
B)A situation in which the players' reaction curves do not intersect.
C)The fact that if firms charge the same unit price they may not sell the same quantity.
D)The idea that in a duopoly a firm has to consider price and output when making decisions.
E)The possibility that all that is necessary for prices to be the same as in competitive markets is for there to be two firms competing in a market.
10.
Tacit conclusion excludes which of the following:
A)Prices being similar as between firms.
B)Formal agreements on market sharing.
C)Price wars occurring.
D)Threats to undercut a rival firm's prices.
E)The possibility that firms have imperfect information about the market.





To learn more about the book this website supports, please visit its Information Center.
(c)2006 McGraw-Hill Education Europe
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Education Europe is one of the many fine businesses of The McGraw-Hill Companies.


Principles of EconomicsOnline Learning Center

Home > Chapter 10 > Multiple Choice Quiz