The Table Below Shows the Payoffs to the Running of Negative

question 61

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.Suppose that the Republican candidate tells the Democratic candidate that he intends to run a positive campaign.The likely result is that:

• A)both candidates will run a positive campaign.
• B)the Republican candidate will run a positive campaign,but the Democratic candidate will run a negative campaign.
• C)the Republican candidate will eventually turn to negative campaigning because the Democratic candidate will run a negative campaign.
• D)the Democratic candidate will trust the Republican candidate's statement and run a positive campaign,but the Republican candidate will run a negative campaign.

---

Definitions:

Credit

The trust which allows one party to provide resources to another party wherein the second party does not reimburse the first party immediately but promises to do so in the future.

Bonds

Fixed income investments representing a loan made by an investor to a borrower, typically corporate or governmental.

Loan Money

The act of giving money, property, or other material goods to another party in exchange for future repayment of the principal amount, along with interest or other finance charges.

Lottery

A form of gambling involving the drawing of numbers for a prize.