Questions & Answers
Browse all 20 questions from the
Foundations of Game Theory study set below.
Each question shows the correct answer — select a study format above to practice interactively.
1
In game theory, what term describes a situation where no player can benefit by changing their strategy while the other players keep theirs unchanged?
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A
Zero-sum equilibrium
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B
Nash equilibrium
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C
Pareto efficiency
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D
Dominant strategy
2
Which mathematician is credited with formalising the concept of the Nash equilibrium?
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A
John von Neumann
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B
Oskar Morgenstern
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C
John Nash
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D
Albert Tucker
3
What defines a 'zero-sum game'?
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A
One player wins exactly what the other player loses
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B
All players end with a net gain of zero
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C
No player can win or lose
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D
The game ends in a draw
4
In the classic 'Prisoner's Dilemma', what is the result if both players choose to defect?
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A
Both receive the best possible outcome
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B
Both receive a worse outcome than if they had both cooperated
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C
One player goes free and the other stays in prison
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D
The game is reset
5
What is a 'dominant strategy' in a game?
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A
A strategy that is only chosen by the strongest player
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B
A strategy that provides the best outcome regardless of the opponent's choice
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C
A strategy that requires a random selection
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D
A strategy that leads to a draw
6
Which field of study focuses on the study of mathematical models of strategic interaction among rational decision-makers?
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A
Game Theory
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B
Statistics
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C
Calculus
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D
Geometry
7
In game theory, what is a 'payoff matrix' used for?
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A
To list the historical winners of the game
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B
To calculate the probability of a random event
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C
To represent the outcomes of a game for each combination of strategies
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D
To determine the rules of the game
8
What is a 'cooperative game' characterized by?
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A
Players can form binding agreements or coalitions
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B
Players never communicate
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C
Players are prohibited from sharing information
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D
The game must end in a tie
9
In game theory, what does 'utility' typically represent?
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A
The physical resources used in the game
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B
The level of satisfaction or value a player derives from an outcome
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C
The total number of moves made
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D
The difficulty level of the game
10
What is the 'Minimax' theorem primarily used for in game theory?
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A
Maximizing the potential loss
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B
Minimizing the maximum possible loss in zero-sum games
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C
Ensuring both players win
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D
Selecting the starting player
11
Which of these is a classic example of a 'non-zero-sum' game?
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A
The Prisoner's Dilemma
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B
A standard chess match
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C
A game of poker
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D
Rock-paper-scissors
12
What does 'perfect information' mean in a game?
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A
Every player is a grandmaster
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B
All players know every move that has previously occurred
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C
The game has no rules
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D
The game is impossible to lose
13
In game theory, what is a 'mixed strategy'?
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A
A strategy that combines luck and skill
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B
A player chooses between several moves randomly with specific probabilities
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C
A player consults with the opponent before moving
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D
A player ignores the rules of the game
14
What defines a 'sequential game'?
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A
Players move at the exact same time
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B
Players make decisions in a specific order
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C
The game can be finished in one move
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D
Players are unaware of the turn order
15
What is 'Pareto efficiency'?
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A
A state where one player's situation cannot be improved without worsening another's
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B
A state where everyone wins
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C
A state where the game ends immediately
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D
A state where all players receive equal payoffs
16
What is the significance of the 'Centipede game' in game theory?
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A
It demonstrates that rational players may fail to cooperate even when it is mutually beneficial
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B
It is the only game with infinite moves
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C
It proves that cooperation always leads to a win
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D
It is a game played only with physical insects
17
In a 'normal form' game, how are the players' moves typically represented?
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A
As a tree diagram
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B
As a matrix
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C
As a list of instructions
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D
As a series of equations
18
What is the 'Backwards Induction' method used for?
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A
Predicting future moves in sequential games by reasoning from the end
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B
Randomly selecting a starting move
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C
Ignoring previous moves
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D
Analyzing games with no end
19
What is a 'zero-sum' game outcome where no one gains an advantage called?
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A
Equilibrium
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B
Stalemate
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C
Symmetry
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D
Independence
20
Who co-authored 'Theory of Games and Economic Behavior' with John von Neumann?
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A
John Nash
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B
Oskar Morgenstern
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C
Adam Smith
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D
Alfred Marshall
