In economics, a game is always a prisoners’ dilemma.Group of answer choicesTrueFalse

Step 1: Understanding the Statement

The statement claims that "a game is always a prisoners’ dilemma." To assess this, we need to understand what a prisoners' dilemma is and how it relates to different types of games in economics.

Step 2: Definition of Prisoners' Dilemma

A prisoners' dilemma is a standard example of a game in which two players can either cooperate or defect. The outcomes depend on the choices made by both players, and the dilemma arises because the dominant strategies lead to a worse outcome for both players if they both choose to defect.

Step 3: Analyzing the Statement

1. Nature of Games in Economics: Not all economic games qualify as prisoners' dilemmas. Various game types exist, such as coordination games, zero-sum games, and public goods games, which have different strategic considerations and outcomes.
2. Characteristic of Prisoners' Dilemma: The prisoners' dilemma specifically refers to situations where individual rational actions lead to a collective irrational outcome, which doesn’t apply universally to every game.

Step 4: Conclusion

While the prisoners' dilemma is a significant concept in game theory, it does not encompass all games. Therefore, the statement is false.

Final Answer

False: Not all economic games are prisoners’ dilemmas; they vary widely in type and strategic implications.