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Question 13 Not yet saved Marked out of 1.00 Flag question Think of the problem of climate change as a game between two countries called China and the US, considered as if each were a single individual. Each country has two possible strategies for addressing global carbon emissions: 1. Restrict: taking measures to reduce emissions, for example by taxing the use of fossil fuels 2. BAU (business as usual): a scenario in which people, governments and businesses are free to pursue their own pleasures, politics, and profits without taking adequate account of the effect of their actions on others, including future generations. The matrices below describe the outcomes and hypothetical payoffs of this game. US US Restrict BAU Restrict BAU BEST GOOD Reduction in emissions sufficient to moderate climate change US free rides on Chinese emissions Restrict Restrict Cutbacks BEST WORST China China WORST BAD BAU China free rides on US emissions cutbacks No reduction in emissions BAU GOOD BAD Which of the following statements can be derived from this game? O a. The best outcome is not always guaranteed in this game. ob. This is an invisible hand game. O c. This is a prisoner's dilemma game. O d. Each player has two dominant strategies. O e. The US is the dominant player in this game

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