Game Theory Is the Tool That Economists Use to Analyze

question 21

Multiple Choice

Game theory is the tool that economists use to analyze strategic behavior,which is behavior that takes into account the ________ behavior of others and the mutual recognition of ________.

• A) unexpected; interdependence
• B) unexpected; independence
• C) expected; interdependence
• D) expected; independence
• E) random; profit

---

Definitions:

Meeting of the Minds

An agreement between parties on the terms of a contract, demonstrating mutual consent and understanding.

Unilateral Mistake

An error made by one party in a contract that does not affect the other party's understanding or agreement.

Misunderstanding

A situation where the intended meaning of a communication is not correctly perceived by one or more parties.

Fraudulent Misrepresentation

A false statement made knowingly or recklessly with the intent to deceive, leading to a contract or transaction.