MCQOPTIONS
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MCQOPTIONS
This section includes 3 Mcqs, each offering curated multiple-choice questions to sharpen your Master of Arts in Economics (MA Economics) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Which of the following legal restrictions, if enforced effectively, would be likely to solve a prisoners dilemma type of problem for the firms involved? |
| A. | a law that prevents a cartel from enforcing rules against cheating |
| B. | a law that makes it illegal for oligopolists to engage in collusion |
| C. | a law that prohibits firms in an industry from advertising their services |
| D. | all of the above would be likely to solve a prisoners dilemma for the firms |
| Answer» D. all of the above would be likely to solve a prisoners dilemma for the firms | |
| 2. |
Until recently, medical doctors and lawyers have been prohibited from engaging in competitive advertising. If the prisoners dilemma applies to this situation, then the presence of this restriction would be likely to |
| A. | increase profits earned by individuals in these professions |
| B. | reduce profits earned by individuals in these professions |
| C. | have no effect on the profits earned by individuals in these professions |
| D. | increase the profits of some and reduce the profits of other individuals in these professions |
| Answer» B. reduce profits earned by individuals in these professions | |
| 3. |
A prisoners dilemma is a game with all of the following characteristics except one. Which one is present in a prisoners dilemma? |
| A. | players cooperate in arriving at their strategies |
| B. | both players have a dominant strategy |
| C. | both players would be better off if neither chose their dominant strategy |
| D. | the payoff from a strategy depends on the choice made by the other player |
| Answer» B. both players have a dominant strategy | |