When countries spend increasingly large amounts of funds on military production as a means of impressing an equally powerful antagonistic neighbor with possible military superiority,a prisoners' dilemma evolves since both countries would be better off if they did not pursue such a strategy.This is an example of:

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The scenario described is that of an arms race, where both countries are engaging in extensive military production to try and achieve a position of superiority over the other. This is considered a classic example of the prisoners' dilemma because both sides would be better off if they did not engage in this costly and potentially destructive competition.

When Countries Spend Increasingly Large Amounts of Funds on Military