Edmentum Economics - Fiscal Policy & Game Theory Review

Which of the following is NOT an example of fiscal policy?

• reducing taxes on businesses

• decreasing government spending

• Increasing interest rates

• increasing government spending

Choose the example of expansionary fiscal policy:

• Raising interest rates
• Decreasing taxes
• Reducing government spending
• Increasing taxes

Choose one example of contractionary fiscal policy:

• Expanding the money supply
• Decreasing government spending
• Lowering taxes
• Increasing government spending

_____________________ fiscal policy is used to help stimulate economic growth in times of recession, when GDP is low and unemployment is high.

________________ fiscal policy is used the reduce inflation and slow the growth of the economy.

The three requirements for a game in game theory include all of the following, EXCEPT:

• players

• actions

• payoffs

• strategies

Luka has two options, shoot the ball or pass to a teammate. If the other team double-teams Luka, he should pass the ball. If the other team does not double-team Luka, he should shoot. Which of the following is true?

• Luka has a dominant strategy

• Luka does not have a dominant strategy

If Player 2 chooses C, then player 1 should choose:

• C

• S

• Player 1 should quit the game

Does a dominant strategy exist for Player 1?

• Yes, the dominant strategy is action C

• Yes, the dominant strategy is action S

• There is no dominant strategy for Player 1

Does a dominant strategy exist for Player 2?

• Yes, the dominant strategy is action C

• Yes, the dominant strategy is action D

• There is no dominant strategy for Player 2