A Dominant Strategy Exists If

question 138

Multiple Choice

A dominant strategy exists if:

• A)a player has a strategy that yields the highest payoff regardless of the other player's choice.
• B)both players have the highest payoff when they make the same choice.
• C)both players make the same choice.
• D)one strategy yields the highest possible payoff.

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Definitions:

Q

Generally denotes quantity in economic and mathematical models, referring to the amount of goods or services.

School of Thought

A particular philosophy or a specific way of thinking that is characteristic of a certain group or period.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Velocity of Money

The rate at which money circulates in the economy, typically measured as the ratio of GDP to the national money supply.