Assume the following four scenarios. First, identify their nature of the situation (that is, which type of game and situation is implied) and second, discuss each one of them in terms of outcomes and possible solutions. (a) In the superpowers’ arms race, it is advantageous for one country to have a larger nuclear arsenal than its rival. But arms escalation by both sides improves neither side’s security (and probably worsens it). (b) The more widely antibiotics are prescribed, the more rapidly drug-resistant microorganisms develop.
Assume the following four scenarios. First, identify their nature of the situation (that is, which type of game and situation is implied) and second, discuss each one of them in terms of outcomes and possible solutions. (a) In the superpowers’ arms race, it is advantageous for one country to have a larger nuclear arsenal than its rival. But arms escalation by both sides improves neither side’s security (and probably worsens it). (b) The more widely antibiotics are prescribed, the more rapidly drug-resistant microorganisms develop.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Assume the following four scenarios. First, identify their nature of the situation (that is, which type of game and situation is implied) and second, discuss each one of them in terms of outcomes and possible solutions.
(a) In the superpowers’ arms race, it is advantageous for one country to have a larger nuclear arsenal than its rival. But arms escalation by both sides improves neither side’s security (and probably worsens it).
(b) The more widely antibiotics are prescribed, the more rapidly drug-resistant microorganisms develop.
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