If We Use Prisoner's Dilemma to Model an Arms Race

question 33

Multiple Choice

If we use prisoner's dilemma to model an arms race between competing powers,which of the following best represents a player's choices,from most-preferred to least-preferred?

• A) Unilateral disarmament,unilateral armament,mutual restraint,mutual armament
• B) Unilateral armament,unilateral disarmament,mutual restraint,mutual armament
• C) Mutual restraint,unilateral disarmament,unilateral armament,mutual armament
• D) Unilateral armament,mutual restraint,mutual armament,unilateral disarmament

---

Definitions:

Monetary Policy

The process by which a central bank, currency board, or other regulatory authority manages the supply of money in an economy, primarily through interest rates to achieve macroeconomic objectives like inflation, consumption, growth, and liquidity.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Taxing

The act of imposing taxes on individuals or businesses by the government to generate revenue for public expenditures.

Ability-to-Pay Principle

A taxation principle that suggests taxes should be levied based on the taxpayer's ability to pay, implying that those with higher incomes should pay more taxes.