Scenario 17-3

Scenario 17-3. Consider two countries, Muria and Zenya, that are engaged in an arms race. Each country must decide whether to build new weapons or to disarm existing weapons. Each country prefers to have more arms than the other because a large arsenal gives it more influence in world affairs. But each country also prefers to live in a world safe from the other country's weapons. The following table shows the possible outcomes for each decision combination. The numbers in each cell represent the country's ranking of the outcome (4 = best outcome, 1 = worst outcome) .

-Refer to Scenario 17-3.Which of these statements is correct?
(i) Muria is better off building new weapons if Zenya builds new weapons.
(ii) Muria is better off building new weapons if Zenya disarms existing weapons.
(iii) Building new weapons is Muria's dominant strategy.

A) (i) and (ii)
B) (ii) and (iii)
C) (i) and (iii)
D) (i) , (ii) , and (iii)

Correct Answer:

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