#1
Which type of market structure is characterized by a large number of sellers, each producing a slightly different product?
Monopoly
Oligopoly
Perfect competition
Monopolistic competition
#2
Which concept in market competition refers to the ability of a firm to set prices for its products or services?
Price elasticity
Market power
Demand elasticity
Market equilibrium
#3
What concept in market competition refers to the potential gain or loss incurred by changes in market conditions?
Market power
Market risk
Market equilibrium
Market failure
#4
What is 'game theory' in the context of economics?
A theory about playing games for entertainment
A mathematical framework for analyzing strategic interactions
A theory about game development and programming
A theory about sports strategies
#5
Which market structure is characterized by a single seller with significant control over supply and pricing?
Oligopoly
Perfect competition
Monopoly
Monopolistic competition
#6
Which market structure is characterized by a few large firms dominating the industry?
Oligopoly
Perfect competition
Monopoly
Monopolistic competition
#7
In economic game theory, what does the term 'Nash equilibrium' refer to?
A point where all players lose
A strategy where no player has an incentive to change their choice unilaterally
A situation where only one player dominates
A state where all players cooperate perfectly
#8
What is the 'prisoner's dilemma' in game theory?
A situation where prisoners collaborate to escape
A scenario where cooperation leads to a suboptimal outcome for individuals
A negotiation strategy among competing firms
A game played by prisoners during recreation time
#9
What does the 'Tragedy of the Commons' refer to in the context of economic game theory?
A situation where common resources are exploited and depleted due to individual self-interest
A strategy for managing shared resources for the common good
A successful collaboration among individuals for resource conservation
A market structure with common ownership of all resources
#10
In game theory, what does the term 'tit-for-tat' strategy involve?
A strategy of always cooperating, regardless of the opponent's move
A retaliatory approach where one responds in kind to an opponent's previous move
A strategy of random decision-making
A dominant strategy used by all players in a game
#11
What is the primary objective of cartel formation in market competition?
To promote fair competition
To encourage price wars among members
To restrict competition and maximize joint profits
To support market entry for new firms
#12
In oligopoly, what is the term used to describe a situation where competitors match each other's price changes?
Collusion
Price leadership
Price discrimination
Price fixing
#13
What is the 'winner's curse' in auction theory?
The tendency for the winning bid to exceed the actual value of the item
The strategy of always bidding the lowest amount
A situation where there are no winners in an auction
A curse that befalls the winner of an auction
#14
What does the term 'market failure' mean in the context of economic game theory?
A situation where the market is functioning efficiently
A condition where the market does not allocate resources optimally
The success of a market strategy
A market dominated by a single firm
#15
What is the 'free rider problem' in public goods theory?
A situation where individuals benefit from a public good without contributing to its production
A strategy where individuals ride public transportation without paying
A scenario where public goods are provided without cost
A problem faced by free-market economies
#16
In the context of auction theory, what is a 'reserve price'?
The highest bid in an auction
The minimum acceptable bid set by the seller
The average bid across all participants
The winning bid in a sealed-bid auction
#17
What is the 'Bertrand paradox' in game theory?
A situation where firms compete on quality rather than price
A condition where firms collude to maximize profits
A failure in the Nash equilibrium concept
A paradoxical outcome where firms compete to match prices, eroding profits
#18
What is the role of a 'signal' in signaling games within game theory?
To confuse opponents with misleading information
To convey credible information about one's type or intentions
To disrupt the equilibrium in the game
To withhold information for strategic advantage