How would you best specify the prisoner’s dilemma in terms of international trade restrictions? Select one – the most appropriate answer.

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BlackTom AI · Accepted Answer

To approach this question, I will evaluate each statement in the context of the prisoner’s dilemma as it applies to international trade restrictions.
Option 1: "All answers are correct." This would require every other option to be true as stated, which is unlikely given some choices are competing interpretations or more nuanced. Without strong justification for each, claiming all are correct would be premature.
Option 2: "All trading parties will be better-off as a result of the agreement." In a classic prisoner’s dilemma setup, mutual cooperation can yield better payoffs than mutual defection, but this statement assumes a specific agreement actually occurs and that all parties strictly benefit from cooperation. In real-world trade, distributional effects and enforcement issues mean not every party is guaranteed to be better off, so this may be misleading as a blanket claim.
Option 3: "Negotiating results in higher benefits compared to costs." This is appealing in a cooperative framing, but the prisoner’s dilemma emphasizes that without credible commitment and enforcement, negotiating does not always yield outcomes where benefits exceed costs for all players. The statement can be true in some contexts, but it is not universally guaranteed by the PD framework.
Option 4: "Trade policy realized by trading countries unilaterally typically fails to achieve the best possible result." This aligns well with the essence of the prisoner’s dilemma: if each country pursues its own best unilateral action (defect/protect), the aggregate outcome is suboptimal compared to a coordinated, cooperative outcome. It captures the core inefficiency of unilateral actions in PD-style trade restrictions.
Option 5: "No correct answer." Given the strong alignment of option 4 with the PD interpretation of trade restrictions, declaring no correct answer would be inappropriate.
Option 6: "Unilateral actions will tend to bring about protectionism." This sentence reflects a typical PD intuition: unilateral protectionism by one country can provoke retaliation by others, leading to protectionist spillovers. However, describing this as the primary outcome requires careful framing; while plausible, it doesn’t alone specify the PD’s comparative payoff structure as clearly as option 4 does.
Overall, option 4 most accurately encapsulates the prisoner’s dilemma in the context of international trade restrictions by highlighting that unilateral decisions fail to reach the best collective outcome, which is the central theme of the PD in this setting. The other options contain notable caveats or broader claims that aren’t guaranteed by the PD alone, or they overstate certain conditions without accounting for enforcement and payoff distributions.

econ_420_120255_249094 Lesson 9 Quiz

How would you best specify the prisoner’s dilemma in terms of international trade restrictions? Select one – the most appropriate answer.

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