Chapter 09 Test Bank KEY
1. While everyone wants a clean environment, it can be very hard to achieve. An approach governments
could take to promote that outcome is to:
2. The prisoner’s dilemma is a game of strategy:
3. To economists, games are:
4. To economists, a game is:
5. Economic games can be used to analyze decisions around which of the following situations?
6. The study of how people behave strategically under different circumstances is called:
7. Game theory is:
8. Game theory is:
9. When the trade-offs you face are determined by the choices someone else will make, behaving
rationally involves:
10. Behaving strategically:
11. Behaving strategically means:
12. When your outcomes depend on another’s choices, asking __________________ is the key to good
decision making.
13. All games involve which of the following?
14. All games involve which of the following?
15. All games involve which of the following?
16. All games involve which of the following?
17. In games, rules:
18. In real life, people’s behavior is constrained by:
19. An example of a real-life rule that might constrain people’s behavior is:
20. In games, strategies are:
21. In games, the strategy to reach a particular goal:
22. In games:
23. Payoffs are:
24. An example of a payoff in a game would be:
25. In game theory, an example of a payoff could be:
26. The prisoner’s dilemma game can involve:
27. The prisoner’s dilemma:
28. The prisoner’s dilemma can be summarized in:
29. A decision matrix:
30. When a strategy is the best one to follow no matter what strategy other players choose, it is called a:
31. A dominant strategy is one:
32. A dominant strategy:
33. In the prisoner’s dilemma game:
34. In the prisoner’s dilemma:
35. In the prisoner’s dilemma game:
36. In the prisoner’s dilemma game:
37. In the prisoner’s dilemma game:
38. The prisoner’s dilemma game can be used to describe
39. The prisoner’s dilemma game:
40. In the prisoner’s dilemma game:
41. The players of prisoner’s dilemma-type games:
9-9
42.
The figure shown portrays a game using a:
43.
9-10
The game in the figure shown is a version of:
44.
The game in the figure shown is a version of:
45.
According to the figure shown, if Nike charges a high price, then Adidas should:
46.
According to the figure shown, if Adidas charges a low price, then Nike should:
9-12
47.
According to the figure shown, Nike:
48.
According to the figure shown, Adidas:
9-13
49.
According to the figure shown:
50.
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The stable outcome of the game in the figure shown will be:
51.
The outcome of the game in the figure show predicts that Nike will earn profits of:
52.
If the players in the figure shown act in their own self-interest, then we know that Adidas will earn:
53.
If Nike and Adidas are faced with the game in the figure shown, we can predict:
9-16
54.
If Nike and Adidas are faced with the game in the figure, we can see that:
55.
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single
grade. They both will enjoy a higher grade when more effort is put into the project, but they also get
9-17
pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each
would get from the effort they individually put forth and the grade they jointly receive.
If Sarah and Joe are working on a project together and faced with the choices outlined in the figure
shown, we can predict the outcome will be that:
56.
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single
grade. They both will enjoy a higher grade when more effort is put into the project, but they also get
pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each
would get from the effort they individually put forth and the grade they jointly receive.
The game in the figure shown is a version of:
9-18
57.
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single
grade. They both will enjoy a higher grade when more effort is put into the project, but they also get
pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each
would get from the effort they individually put forth and the grade they jointly receive.
The game in the figure shown is a version of:
58.
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single
grade. They both will enjoy a higher grade when more effort is put into the project, but they also get
9-19
pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each
would get from the effort they individually put forth and the grade they jointly receive.
According to the figure shown, if Joe puts forth high effort, then Sarah should:
59.
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single
grade. They both will enjoy a higher grade when more effort is put into the project, but they also get
pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each
would get from the effort they individually put forth and the grade they jointly receive.
According to the figure shown, if Sarah puts forth low effort, then Joe should:
9-20
60.
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single
grade. They both will enjoy a higher grade when more effort is put into the project, but they also get
pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each
would get from the effort they individually put forth and the grade they jointly receive.
According to the figure shown, Joe:
61.
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single
grade. They both will enjoy a higher grade when more effort is put into the project, but they also get