The Following Payoff Matrix Shows the Outcomes for the US

question 66

Multiple Choice

The following payoff matrix shows the outcomes for the US and the USSR from relying on conventional weapons or atomic weapons.The percentages refer to the fraction of the population that would die if a war occurred under the two weapons strategies.Assume the payoff matrix is for 1945,shortly after the US had demonstrated the effectiveness of the atomic bomb in World War II,i.e. ,the example begins in the upper right cell where USA has atomic weapons and the USSR has only conventional weapons. $\begin{array}{c}\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \text { USSR }\\\text { USA }\begin{array}{|l|l|l|}\hline& \text {Atomic Weapons } & \text { Conventional } \\\hline \text { Atomic } & \text { In the USA, } 60 \% \text { would die, } & \text { In the USA S\% would die, } \\ \text { Weapons } &\text { In the USSR, } 60 \% \text { would die } & \text { In the USSR, } 90 \% \text { would die } \\\hline \text { Conventional } &\text { In the USA, } 90 \% \text { would die; } & \text { In the USA } 10 \% \text { would die, } \\\text { In the USSR, } 5 \% \text { would die } & \text { In the USSR, } 10 \% \text { would die.. } \\\hline\end{array}\end{array}$
Refer to the information given above.When the United States demonstrated its nuclear capability in the 1940's,the predictable result was:

• A)the arms race ended.
• B)the USSR responded by developing chemical weapons.
• C)the USSR developed its nuclear capability.
• D)the United States decided to refrain from development.

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Definitions:

Quoted Price

The publicly stated cost or value of a stock, commodity, or financial instrument.

Coupon Rate

The yearly rate of interest that the entity issuing a bond pays to its investors, represented as a proportion of the bond's nominal value.

Yield

Yield is the income returned on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost.

Price

The financial sum anticipated, obliged, or handed over in exchange for an item.