When Countries Spend Increasingly Large Amounts of Funds on Military

question 135

Multiple Choice

When countries spend increasingly large amounts of funds on military production as a means of impressing an equally powerful antagonistic neighbor with possible military superiority,a prisoners' dilemma evolves since both countries would be better off if they did not pursue such a strategy.This is an example of:

• A)a tacit agreement.
• B)an arms race.
• C)a price leadership model.
• D)exclusive dealing.

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