How Does a Zero-Sum Game Compare with a Non-Zero-Sum Game

question 40

Multiple Choice

How does a zero-sum game compare with a non-zero-sum game?

• A)In a zero-sum game,one player's gain is by definition equal to the other's loss,whereas in a non-zero-sum game,players' gains and losses cancel each other out.
• B)In a zero-sum game,one player's gain is by definition equal to the other's loss,whereas in a non-zero-sum game,it is possible for both players to gain or lose.
• C)In a zero-sum game,both players win,whereas in a non-zero-sum game,both players lose.
• D)Zero-sum games are more typical in international political economy,whereas non-zero-sum games are more typical in international security.

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Definitions:

Compound Yield

The rate of return on an investment or loan, considering the effect of compounding interest.

Coupon Bond

A debt security that pays the investor periodic interest payments called coupons and returns the principal at the end of the maturity.

Par Value

Par Value is the face value of a bond or stock as stated by the issuer, which might not reflect its market value.

Yield To Maturity

The total return expected on a bond if held till its maturity date, including both interest payments and capital gains or losses.