According to Contrarians, the Big Decline in the Stock Market

question 201

Multiple Choice

According to contrarians, the big decline in the stock market during the early 2000s was:

• A) a great opportunity to invest in stocks.
• B) proof that the stock market was not as sound an investment as most people thought.
• C) a sign that more government regulation was needed to prevent big losses.
• D) proof that the future of capitalism should rely more on small, unincorporated businesses rather than big corporations.

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Definitions:

Simultaneous Game

A type of strategic game in game theory where all players make decisions or choose their strategies at the same time without knowledge of the others' choices.

Utility

A measure of satisfaction or happiness that consumers receive from consuming goods and services.

Prisoner's Dilemma

A fundamental problem in game theory demonstrating that two people might not cooperate even if it is in both their best interests to do so.

Nash Equilibrium

An idea in game theory where a player cannot benefit by altering their strategy alone while the strategies of other players stay the same.