Why Is the Prisoner's Dilemma Difficult

question 54

Multiple Choice

Why is the prisoner's dilemma difficult?

• A) because one player's outcome depends on what the other person decides to do
• B) because competition on one trial may provoke the other player not to cooperate in the future
• C) because cooperation decreases as the number of players increases
• D) because a single player's best possible outcome occurs when both players cooperate

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Definitions:

Financial Account Deficit

A situation where a country's financial outflows to other countries exceed the inflows from them.

Current Account Surplus

A situation where a country's earnings from exports exceeds its spending on imports, leading to net positive income from foreign transactions.

Balance of Trade

The net difference in value between a country's exports and imports over a certain period.

Balance on Capital Account

A national accounting measure that records all transactions for foreign investments and loans going in and out of a country.