In economics, a ______ is an interaction where the gain to one party equals the loss to another party.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. zero-sum game.
In economics, a zero-sum game is an interaction where the gain to one party equals the loss to another party. This means that the total resources or benefits within the system remain constant; they are simply reallocated among the participants. For example, in a pure gambling scenario, one person's winnings are directly offset by another's losses. There is no net creation or destruction of wealth in a zero-sum game, only redistribution.