Scenario: Beth and Charles Are Playing a Trust Game

Multiple Choice

Scenario: Beth and Charles are playing a trust game. At the beginning of the game, Beth has to choose whether to trust Charles. If she trusts him, he can choose to either defect or cooperate. The diagram below shows their respective payoffs in different situations.

-Refer to the scenario above.This is an example of ________.

A) a zero-sum game
B) an extensive-form game
C) the free-rider problem
D) the tragedy of commons