Actions That Ignore the Possible Long-Run Benefits of Cooperation and Focus

question 2

Multiple Choice

Actions that ignore the possible long-run benefits of cooperation and focus solely on short-run gains are

• A) a zero-sum game.
• B) a negative-sum game.
• C) tit-for-tat strategic behavior.
• D) opportunistic behavior.

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Definitions:

Output Effect

The impact on the total production of goods and services in an economy resulting from changes in demand, supply, technology, or factors of production.

Factors of Production

The basic inputs used to produce goods and services, including land, labor, capital, and entrepreneurship.

Complementary Resource

A good or service that is used together with another good or service to provide a benefit or function.

Substitution Effect

The economic understanding that as prices rise or incomes decrease, consumers replace more expensive items with less costly alternatives.