Which of the Following Is True of a Zero-Sum Game

question 40

Multiple Choice

Which of the following is true of a zero-sum game?

• A) The value of the game is equal to zero.
• B) Each player always has a dominant strategy.
• C) Each player's gain comes at the expense of the other.
• D) There are only two players.
• E) One player's payoff is independent of the other player's actions.

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Definitions:

Paradox of Voting

The concept that for a rational, self-interested voter, the costs of voting will normally exceed the expected benefits, given the low probability that one vote will influence the outcome.

Majority Voting

A voting system in which decisions are made based on the majority of votes received, often used in elections and organizational decision-making processes.

Principal-Agent Problem

A scenario in which conflicts of interest arise because the goals of a principal (e.g., a shareholder) do not align with those of an agent (e.g., a company executive).

Moral Hazard Problem

The possibility that individuals or institutions will behave more recklessly after they obtain insurance or similar contracts that shift the financial burden of bad outcomes onto others. Example: A bank whose deposits are insured against losses may make riskier loans and investments.