Reference: Ref 15-7 (Table: Oil Output) Refer to the table. The situation between Iraq and Iran is similar to a:
A) calibration cramp.
B) prisoner's dilemma.
C) flippant switch.
D) cooperative equilibrium.

Question

Reference: Ref 15-7 (Table: Oil Output) Refer to the table. The situation between Iraq and Iran is similar to a:
A) calibration cramp. 
B) prisoner's dilemma. 
C) flippant switch. 
D) cooperative equilibrium.

Quizplus · Accepted Answer

The situation between Iraq and Iran can be likened to a prisoner's dilemma, as both countries have the incentive to increase their oil production, but if both do so, the overall price of oil will decrease, resulting in a loss for both countries. This creates a situation where cooperation is difficult to achieve, and each country may resort to actions that benefit themselves, but harm the other country.

Reference: Ref 15-7 (Table: Oil Output) Refer to the Table