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.

Comprehend the meaning and implications of probabilities valued at 1 and 0.

Interpret and use probability notation effectively.

Appreciate the multiplicity of ways probabilities can be expressed and understand the convertibility among these forms.

Grasp the general purpose of probability and its application in predicting the likelihood of events.