What is the Nash equilibrium of this simultaneous game?
a. Steal, Vigilant
b. Steal, Not vigilant
c. Not steal, Vigilant
d. The game has no Nash equilibrium
QUESTION 2What is consumer surplus?
a. The maximum willingness to pay for a unit of a product
b. The price that an individual pays in equilibrium for a product
c. The difference between how much an individual is willing to pay for a product and how much he ends up paying
d. How many units are traded in equilibrium
QUESTION 3If the boxing match will be the fight of the century which has dramatically increased Sally's payoffs for going to the fights, even without Sam, and Sam knows that, what would the Nash equilibrium be now?
a. Boxing, boxing
b. Ballet, ballet
c. Ballet, boxing
d. Boxing, boxing
QUESTION 4A demand curves describes
a. the amount of units a consumer will purchase at a given price
b. the amount of units a producer will sell at a given price
c. both the amount of units that a consumer will buy and a producer will produce at a given price
d. the amount of units supplied given a change in prices
QUESTION 5If Sally decides to go to the boxing match, what is Sam's best response
a. Go to the ballet
b. Go to the boxing match
c. Run away
d. Hide
QUESTION 6An rational, optimizing, self interested consumer would consume up to the point where
a. the consumer surplus from the last unit is positive
b. the consumer surplus from the last unit is negative
c. the consumer surplus from the last unit is zero
d. none of the above
QUESTION 7What would be the Nash equilibrium of this simultaneous game?
a. Boxing, boxing
b. Ballet, ballet
c. Boxing, ballet
d. Both A&B
QUESTION 8What is your total consumer surplus at the optimal consumption level?
a. 2
b. 3
c. 11.50
d. 3.50
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