How Do Institutions Reduce Uncertainty

question 39

Multiple Choice

How do institutions reduce uncertainty?

• A)Ethical contracting.
• B)Arm's-length transaction with third party enforcement.
• C) Transaction costs.
• D) Opportunism.

---

Definitions:

Stimulus Deprivation

refers to a lack of sensory input or stimulation, which can lead to various cognitive and psychological effects.

Emotionally Secure

Being emotionally secure refers to a state of feeling confident and stable in one's emotional life, allowing for healthy relationships and effective coping with stress and change.

Side-effects

Secondary, typically undesirable effects of a drug or medical treatment, or unintended consequences of actions beyond their intended effects.

Isolation Experiences

Instances or periods in which an individual feels detached from others or society, leading to feelings of loneliness or solitude.