An Example of an Institution That Will Decrease the Expected

question 119

Multiple Choice

An example of an institution that will decrease the expected payoff of investment is

• A) high and variable inflation.
• B) lower tax rates.
• C) private property rights.
• D) political stability.
• E) free trade.

---

Definitions:

Customers' Preference

The inclination or predisposition of consumers towards certain products, services, or brands over others.

Blocking

A method used in experimental design to minimize the effects of nuisance variables by grouping units with similar characteristics.

Random Assignment

An experimental technique for assigning individuals to different groups in a study using randomization, ensuring that each participant has an equal chance of being assigned to any group.

Placebo

A safe medication or treatment recommended primarily for its mental comfort to the patient rather than its physical health benefits.