1a. Trade between two countries can be modelled as a prisoner's dilemma game.The payoff to the home country is highest when

A.Both countries have no tariffs

B.Both countries enact tariffs

C.The home country enacts tariffs but the foreign country does not

D.The foreign country enacts tariffs but the home country does not

1b. Which of the following is true for a small country?

A.The import demand curve is horizontal

B.The import demand curve is vertical

C.The export supply curve is horizontal

D.The export supply curve is vertical