The arms race is similar to which of the following economic scenarios?
A)the competitive game
B)the prisoners' dilemma
C)the welfare choice
D)cost allocation theory

Question

Quizplus · Accepted Answer

The arms race is similar to the prisoners' dilemma, as both involve two parties making decisions that are ultimately detrimental to both sides. In an arms race, both sides engage in a costly arms buildup, even though mutual disarmament would be the better outcome. Similarly, in the prisoners' dilemma, both parties confess to a crime, resulting in both receiving a harsher punishment, even though cooperation would result in a better outcome for both.

The Arms Race Is Similar to Which of the Following