(See Problem 1

question 10

Multiple Choice

(See Problem 1.) Alice and Betsy are playing a game in which each can play either of two strategies, leave or stay. If both play the strategy leave, then each gets a payoff of $100. If both play the strategy stay, then each gets a payoff of $800. If one plays stay and the other plays leave, then the one who plays stay gets a payoff of $C and the one who plays leave gets a payoff of $D. When is the outcome where both play leave a Nash equilibrium?

• A) When D > C and C > $100.
• B) Never, since $800 > $100.
• C) When $100 > C and D > $800 but not when $800 >D.
• D) Whenever D < $800.
• E) Whenever $100 > C.

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Definitions:

Latency

The fourth stage in Freud’s psychosexual stages, occurring during the school years, in which the sexual feelings of the child are repressed while the child develops in other ways.

Psychosexual Stages

A Freudian theory that developmental stages beginning in childhood are focused on erogenous zones; failure to properly navigate these stages can affect adult personality.

Oral Stage

The first psychosexual development stage according to Freud, where the mouth is the primary focus of pleasure and exploration.

Weaned

The process of gradually introducing a young mammal to what will be its adult diet and withdrawing the supply of its mother's milk.