An Area of Economics That Explores How Contract or Transaction

question 109

Multiple Choice

An area of economics that explores how contract or transaction structures can overcome asymmetric information problems is

• A) behavioral economics.
• B) adverse selection.
• C) econometrics.
• D) mechanism design.

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Definitions:

Johnson Amendment

A U.S. law that prohibits tax-exempt organizations from endorsing or opposing political candidates, to maintain separation of church and state.

President Trump

The 45th President of the United States, Donald J. Trump, who served from January 20, 2017, to January 20, 2021.

501(c)(3)

A section of the U.S. Internal Revenue Code that provides a tax-exempt status to nonprofit organizations that are charitable, religious, educational, scientific, or literary in nature.

501(c)(4) Organizations

Nonprofit groups recognized under the U.S. tax code as "social welfare" organizations, permitted to engage in advocacy and lobbying efforts to a certain extent.