CLEP Microeconomics Exam Prep

Answer - B - Game theory is a study of how groups and people tend to behave in strategic situations.

Key Takeaway: Game theory is used by economists to understand and analyze how people and business react in economic situations: how people chose to cooperate, what would be profitable, etc. In game theory, the various players may use different economic strategies, but the dominant strategy is always discussed that is the one that is best for that particular party-no matter what the strategy of the other parties.