Glendale Community College » Economics » Econ 101 - Microeconomics » Winter 2022

Question #1

Game theory:

A. is more flexible than the standard supply/demand model.

B. replaces the perfectly competitive market model.

C. is more restrictive than the standard supply/demand model.

D. replaces the monopoly model.

Question #2

A Nash equilibrium is:

A. the output level that minimizes average total cost.

B. the strategy that maximizes the outcome of all the players.

C. the payoff that maximizes the joint payoff.

D. the set of strategies such that no player can improve his or her position by changing his or her own action.

Question #3

A set of strategies in which no player can improve his or her payoff by changing his or her own action is called:

A. a Vickrey position.

B. a dominant strategy

C. a framing strategy.

D. a Nash equilibrium.

Question #4

If the payoffs from strategy Y are always greater than strategy X,

A. than the payoffs are a Nash equilibrium.

B. strategy X strictly dominates strategy Y.

C. strategy X strictly dominates strategy X.

D. strategy Y strictly dominates strategy X.