The game of Matching Pennies
a. has no Nash equilibrium.
b. has a pure-strategy Nash equilibrium.
c. has a mixed strategy Nash equilibrium.
d. has multiple Nash equilibria.
QUESTION 2Which of the following statements is true about the Canadian health care system?
a. Many Canadians travel to the U.S. in order to receive expensive treatments.
b. Canadians have the option of purchasing private health insurance if they can afford it.
c. Canadian physicians are salaries employees of the provincial health plans.
d. Canadian hospitals have significant excess capacity that is used to treat patients from foreign countries.
e. Canadian physicians are allowed to balance bill patients for certain high-cost procedures.
QUESTION 3If the Prisoners' Dilemma is repeated over and over again with the same two players having an indefinite time horizon,
a. the unique equilibrium is to play the Nash equilibrium of Rat each period.
b. players can cooperate on Silent if they are not too patient.
c. players can cooperate on Silent if they are patient enough.
d. players can only cooperate on Silent in the initial stages of the game.
QUESTION 4One lesson that American policy makers can learn from the health care systems of other counties is
a. people must be willing to accept long waiting lists for expensive services.
b. a government-run system ensures equal access across socio-economic groups.
c. the importance of having a safety valve.
d. the mix between general practitioners and specialists is of little importance.
e. private insurance cannot complement government insurance.
QUESTION 5The Prisoners' Dilemma is so named because
a. the Nash equilibrium is one of the worst outcomes for the players.
b. the game has no Nash equilibrium.
c. the game is zero-sum.
d. players end up earning a lighter sentence than the prosecutor would like.
QUESTION 6Which of the following is not a practice of Japanese physicians.
a. Performing a unusually large number of surgeries.
b. Seeing a large number of patients daily.
c. Dispensing medicine to their patients.
d. Accepting gifts of appreciation from their patients for special service.
e. Discharging patients from the hospital after relative short average stays.
QUESTION 7Best-response functions
a. can only be used to analyze games with continuous actions.
b. are always downward sloping.
c. always intersect at Nash equilibria.
d. never intersect.
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