Multiple Choice Quiz

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1		Which of the following is not a criterion on which theory development is based?
			A)	Social.
			B)	Empirical.
			C)	Psychological.
			D)	Ontological.
2		Which two ontological criteria are used for classifying organizational theories in this book?
			A)	Equilibrium and strategies.
			B)	Pareto optimality and comparative statics.
			C)	Degree of rationality and behavioural hypothesis.
			D)	Organizational size and frequency.
3		Commitment is defined as the
			A)	irreversible implementation of choices.
			B)	choice to stay with the same employer.
			C)	announcement of a new business policy.
			D)	establishment of a reputation for trustworthy behavior.
4		Comparative statics analysis reveals that the
			A)	ability of people to respond well depends on the uncertainty of the environment.
			B)	effect of changes in government policy in stable markets is determined.
			C)	researcher computes the equilibrium without taking time into account.
			D)	effect of the change of an exogenous variable on the endogenous variable is specified.
5		The degree of rationality is defined as the
			A)	ability of people to respond in uncertain circumstances.
			B)	computational abilities of real business people.
			C)	difference in cognition between young and old people.
			D)	ratio of the cognitive capacities of the decision maker and the complexity of the problem.
6		Which of the following is not an ingredient of a non-cooperative game?
			A)	Payoffs.
			B)	Equilibrium.
			C)	Rules.
			D)	Information structure.
7		The Nash equilibrium is defined as a
			A)	payoff maximizing strategy for each player, given the strategies of the other players.
			B)	solution concept used in cooperative game theory.
			C)	credible response for each observable history of the game.
			D)	situation where demand is equal to supply.
8		A game theoretic strategy specifies
			A)	the plan of action in uncertain circumstances.
			B)	the actions a player can choose at each decision node.
			C)	an action for each observable history of the game.
			D)	the payoff maximizing equilibrium response of all players.
9		The most easy way to determine a subgame perfect equilibrium is to use
			A)	the strategic form.
			B)	the method of backward induction.
			C)	comparative statics analysis.
			D)	a paper and pencil.
10		Managerial implications of non-cooperative game theory are obtained by
			A)	using the method of backward induction.
			B)	applying various simulation methods.
			C)	changing the equilibrium of the game.
			D)	changing one of the ingredients of the game.