The Following Payoff Matrix Shows the Outcomes for the US

question 33

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. $\begin{array}{c}\text { USSR }\\\text { USA }\begin{array}{|l|l|l|}\hline &{\text { Atomic Weapona }} & {\text { Conventional }} \\\hline \text { Atomis}& \text { In the USA, } 60 \% \text { would die, } & \text { In the USA S\% would die, } \\ \text { Wespons}&\text { In the USSR, } 60 \% \text { would die } & \text { In the USSR, } 90 \% \text { would die } \\\hline \text { Conventional}&\text { In the USA, } 90 \% \text { would die; } & \text { In the USA } 10 \% \text { would dies } \\&\text { In the USSR, } 5 \% \text { would die } & \text { In the USSR, } 10 \% \text { would die. } \\\hline\end{array}\end{array}$
Refer to the information given above.After both the USA and USSR have access to atomic weapons,the dominant strategy for the US is to employ __________,and for the USSR,the dominant strategy is to employ __________.

• A) atomic weapons;conventional weapons
• B) conventional weapons;atomic weapons
• C) conventional weapons;conventional weapons
• D) atomic weapons;atomic weapons

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Definitions:

Voting Stock

Shares of a corporation that give the shareholder the right to vote on matters of corporate policy and on the selection of the board of directors.

Cash Dividend

A disbursement from a corporation to its stockholders, typically coming from its earnings.

Net Income

The ultimate earnings of a company, arrived at by reducing its revenues by all incurred expenses and taxes.

Nonvoting Preferred Stock

A type of preferred stock that does not grant the holder voting rights at the corporation’s shareholders' meetings.