By Coordinating Legislative Votes and Creating Incentives for Legislators to Support

question 39

Multiple Choice

By coordinating legislative votes and creating incentives for legislators to support one another's proposals rather than offering competing legislation that would divide members' votes, political parties reduce the risks of facing a/an ________ in a legislature.

• A) coordination problem
• B) prisoner's dilemma
• C) principal-agent problem
• D) unstable coalition
• E) collective action problem

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Definitions:

Bookkeeping

The systematic recording of business transactions.

Business Transactions

Acts of trading or dealing involving the exchange of goods, services, or financial assets between two or more parties.

MICR Recording Area

A section on checks encoded with magnetic ink character recognition technology to facilitate the electronic processing of bank checks.

Routing Number

A nine-digit code used in the United States to identify a financial institution in a transaction.