econ 201 ch 18 quiz

When using coordination games to look at the issue of bank runs, the best outcome occurs when: A. some people, but not all, keep their money in the bank. B. all people keep their money in the bank. C. people do not use the banking system. D. people run to withdraw their money from the bank.

all people keep their money in the bank

When a player's best response is to take a different (but complementary) action to the other player, then both participants are playing _____ game. A. a Coase equilibrium B. a coordination C. an anti-coordination D. a strategic dilemma

an anti-coordination

Coordination problems can be solved through each of the following approaches EXCEPT: A. communication. B. backward reasoning. C. focal points, culture, and norms. D. laws and regulations.

backward reasoning

A simultaneous game is one in which: A. regardless of which choices are made, the resulting outcome occurs at the same time. B. each player learns of the other's intention at the same time, before the final choices are made. C. the alternative outcomes all occur on the same time line. D. each player must choose without knowing the other player's choice.

each player must choose without knowing the other player's choice

What problem arises in coordination games with multiple equilibria? A. The multiple equilibria mean that coordination yields no possible gain. B. It is difficult to achieve the commonly desired outcome. C. Players have no incentive to coordinate. D. The equilibria make all players worse off.

it is difficult to achieve the commonly desired outcome

When players in a game collude, they: A. change their products, so that they are in different markets and not competing with each other. B. choose to avoid any outcomes that harm their rival. C. make agreements not to compete with each other and, typically, to charge high prices. D. act independently to try to eliminate other players from the game.

make agreements not to compete with each other and, typically, to charge high prices

A basic logic that applies to all strategic interactions is: A. making a good choice requires that you anticipate what others will do. B. risk must be eliminated. C. games should be avoided, so that decisions can be based on facts. D. action should not be taken until there is a clear best choice.

making a good choice requires that you anticipate what others will do

Which of the following statements regarding a Nash equilibrium is TRUE? A. Cooperation between players could not improve the outcome. B. Each player's expectation of the other player's choice is often incorrect. C. No player can do better by unilaterally changing his or her choice. D. All players choose their overall best response without regard to the other player's likely choice.

no player can do better by unilaterally changing his or her choice

Game theory is: A. the analysis of market forces when there is role reversal for buyers and sellers. B. a view on decision making when clear paths to optimum outcomes are known. C. a view on the development of children's games and toys. D. the science of making good decisions in situations involving strategic interactions.

the science of making good decisions in situations involving strategic interactions

A Nash equilibrium can be identified on a payoff table when: A. each player has an equilibrium that is opposite that of the other player, so they are not in conflict. B. a check mark is put next to each player's best response, and there is a cell with no check marks in it. C. one cell contains the highest gain for each player, although it may not be the player's best response. D. a check mark is put next to each player's best response, and there is a cell with a check mark for each player.

a check mark is put next to each player's best response, and there is a cell with a check mark for each player