Test1 - Multiple-Choice Questions Select the best answer...

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Version 1 Page 1 Multiple-Choice Questions: Select the best answer. Each correct answer is worth 5 points. Each wrong answer is worth zero points. Answers left blank are worth 1 point. Use the following to answer questions 1-2: Michigan and OSU are playing a football game, and it is early in the first half. Michigan is on offense, and can either choose to Run or Pass. OSU is playing defense, and can play Run Defense, Pass Defense, or Blitz. The game is sequential, so Michigan chooses first, then OSU, and finally, if and only if OSU chooses to Blitz, Michigan can choose to Change from Run to Pass, or from Pass to Run. 1. The Michigan and OSU game above is a zero-sum game. If Michigan chooses a Run offense and OSU uses a Run Defense, then Michigan's payoff is 2. If Michigan Runs and OSU uses a Pass Defense, then Michigan gets 5. If Michigan Runs and OSU Blitzes, then Michigan gets -5 if they Change to pass, and 15 if they Stay with run. If Michigan decides to use a Pass offense, then Michigan gets 8 if OSU uses a Run Defense, 3 if OSU uses a Pass Defense, and if OSU blitzes, Michigan gets 10 if they Change to run, and 0 if they Stay with pass. In the rollback equilibrium outcome for this game, A) Michigan chooses the Run offense, and OSU chooses to Blitz, after which Michigan Stays with Run. B) Michigan chooses the Run offense, and OSU chooses the Run Defense. C) Michigan chooses the Run offense, and OSU chooses the Pass Defense. D) Michigan chooses the Pass offense, and OSU chooses the Pass Defense. E) Michigan chooses the Pass offense, and OSU chooses to Blitz, after which Michigan Changes to Run.
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