The Following Payoff Matrix Shows the Outcomes for the US

question 55

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.As a result of the positional externality in this game:

• A)both countries are worse off.
• B)the United States is better off but the USSR is worse off.
• C)the United States is worse off and the USSR is better off.
• D)both countries are better off.

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Definitions:

Operational Results

The financial outcomes resulting from a company's core business operations.

Income Tax Expense

The amount of money a company is required to pay to the government based on its taxable income.

Comprehensive Income

Represents the total change in equity for a reporting period other than transactions from owners, including all revenues, expenses, gains, and losses.