The Prisoners' Dilemma Is Used to Illustrate the Basic Idea

question 102

Multiple Choice

The prisoners' dilemma is used to illustrate the basic idea that

• A) oligopolistic firms would be better off if they collude, but each has an incentive to cheat on the collusive agreement.
• B) oligopolistic firms are always worse off when they collude.
• C) oligopolistic firms never have an incentive to cheat on collusive agreements, unlike prisoners.
• D) students who cheat on economics exams end up in jail.

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Definitions:

Academic Success

The achievement of educational goals, such as high grades, completion of degrees, or acquisition of knowledge and skills.

Entrance Exams

Standardized tests used by educational institutions to assess an individual's readiness or qualification for admission.

Cognitive Biases

Systematic patterns of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.

Irrational

Not logical or reasonable; based on faulty reasoning or emotions.