Ultimate Economics Game Theory In Behavioral Economics Test - 89+ MCQs: Economics - Game Theory in Behavioral Economics Quiz: Master the Intersection of Strategy and Behavior - Economics Game Theory In Behavioral Economics Test

1. According to the Law of Demand, what happens to quantity demanded when price increases?

Remains constant

Decreases

Increases

Unpredictable

2. Which concept in Behavioral Economics involves making decisions based on available information and beliefs about the outcomes?

Prospect Theory

Utility Maximization

Rational Choice Theory

Information Asymmetry

3. Which economic indicator measures the average level of prices in an economy?

Unemployment rate

Gross Domestic Product (GDP)

Consumer Price Index (CPI)

Balance of Trade

4. What is 'Monopolistic Competition'?

A market structure with a single seller and many buyers

A situation where a few large firms dominate the market

A market structure with many sellers offering differentiated products

A market with identical products and many sellers

5. What does 'Game Theory' study?

The behavior of firms in competitive markets

The interaction among rational decision-makers

The effects of government interventions

The dynamics of market supply and demand

6. Who is considered the father of Behavioral Economics?

John Maynard Keynes

Adam Smith

Daniel Kahneman

Milton Friedman

7. Which economist is known for his work on Prospect Theory?

John Nash

John Maynard Keynes

Daniel Kahneman

Milton Friedman

8. What is a Common-pool Resource?

A resource owned by an individual or a group

A resource where one person's use reduces its availability for others

A resource managed by a centralized authority

A resource that is freely available to all

9. What does 'Ceteris Paribus' mean in Economics?

All other things being equal

The law of supply and demand

The assumption of rational behavior

The impact of external factors on market outcomes

10. In Behavioral Economics, what does 'loss aversion' refer to?

Preference for risky choices

Tendency to avoid losses more than acquiring equivalent gains

Neutral attitude towards losses

Indifference to financial outcomes

11. What does 'Fiscal Policy' involve?

The control and regulation of the money supply by central banks

The use of government spending and taxation to influence the economy

The setting of interest rates by financial institutions

The promotion of international trade and commerce

12. Which of the following is a characteristic of a 'Public Good'?

It is rivalrous in consumption

It is excludable

It is non-excludable and non-rivalrous

It is produced by the government

13. In Game Theory, what is a 'Mixed Strategy'?

A strategy that is random and involves multiple actions with specific probabilities

A strategy that combines elements from different games

A strategy where players cooperate to maximize joint payoffs

A strategy that guarantees a win for one player

14. What is the opportunity cost of a decision?

The explicit monetary cost

The total cost incurred

The benefits gained

The value of the best alternative forgone

15. What is 'Asymmetric Information' in Economics?

A situation where all market participants have equal access to information

The balance of information among market participants

A scenario where one party has more or superior information compared to others

The influence of public knowledge on decision-making

16. What is 'Perfect Information' in Game Theory?

A situation where players have complete and accurate knowledge about the game

A game with no uncertainty or randomness

A scenario where all players have equal resources

A game where players always cooperate

17. What does the 'Winner's Curse' refer to in Auction Theory?

The tendency for the winning bidder to overpay in an auction

The advantage that the auctioneer has over the bidders

The strategy of always bidding the maximum amount

The tendency for the auction to end in a tie

18. What is 'Rational Expectations Theory'?

The belief that individuals form expectations about future events based on all available information, including past events

The assumption that individuals always act rationally and optimize their decisions

The theory suggesting that markets are always efficient

The concept that economic outcomes are solely determined by government policies

19. In Auction Theory, what is a Second-Price Auction?

An auction where the highest bidder pays the amount bid

An auction where the second-highest bidder pays the amount bid

An auction where all bidders pay their bid amounts

An auction where the lowest bidder wins the item

20. What is a 'Public Good' in Economics?

A good that is provided by the government

A good that is non-excludable and non-rivalrous

A good that is produced without any cost

A good that is produced only by private companies

Economics - Game Theory in Behavioral Economics MCQ Test 4