Suppose There Are Two Small Island Countries: Avarice, Which Is

Multiple Choice

Suppose there are two small island countries: Avarice, which is populated by people who are completely self-interested, and Altruism, which is populated by people who have adopted social norms of generosity and cooperation. Commitment problems will be:

A) largely avoided in Avarice, but prevalent in Altruism.
B) largely avoided in Altruism, but prevalent in Avarice.
C) prevalent on both islands.
D) largely avoided on both islands.