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

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

(a)   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