The Table Below Shows the Payoffs to the Running of Negative

question 68

Multiple Choice

The table below shows the payoffs to the running of negative and positive political ads by two candidates.The payoffs are the percentage increase or decrease in the number of voters willing to vote for the candidate as a result of the campaign styles. $\begin{array}{c}\quad \quad \quad \quad \quad \quad\quad\quad\quad\quad\quad \quad \text { Republican Candidate } \\\text {Democratic Candidate } \begin{array}{|l|l|l|}\hline & \text { Positive Campaign } & \text { Negative Campaign } \\\hline \text { Positive Campaign } & \begin{array}{l}\text { Democrat } 0 \% \\\text { Republican } 0 \%\end{array} & \begin{array}{l}\text { Democrat }-3 \% \\\text { Republican: }+3 \%\end{array} \\\hline {\text { Negative Campaign }} & \begin{array}{l}\text { Democrat }+5 \% \\\text { Republican: }-5 \%\end{array} & \begin{array}{l}\text { Democrat }-2 \% \\\text { Republican: }-2 \%\end{array} \\\hline\end{array}\end{array}$
Refer to the figure above.Given the payoff matrix,running a negative campaign is __________ for __________.

• A)a dominated strategy;the Democratic candidate
• B)a dominated strategy;the Republican candidate
• C)a dominant strategy;the Democratic candidate
• D)neither a dominant nor dominated strategy;the Republican candidate

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Definitions:

Price

The sum of money needed to buy a product, service, or property.

Coupon Bond

A bond that entitles the holder to receive a fixed interest payment (coupon) at regular intervals until maturity, at which point the principal is repaid.

Yield To Maturity

The expected overall yield on a bond when it is kept until it matures.

Market Price

The actual selling price of a good or service in the marketplace at any given time.