Which of the Following Is an Example of Mechanism Design

question 15

Multiple Choice

Which of the following is an example of mechanism design?

• A) an employer pays all sales people a fixed salary
• B) welfare reform that limits the amount of time a person can collect benefits
• C) health insurance with zero co-pays
• D) reduced prices on bulk purchases

---

Definitions:

Remainderman

The recipient of the trust corpus, the property held in trust, when the trust is terminated.

Distributed

Spreading out resources or processes across multiple locations or over a network, often relating to computing or organizational strategies.

Health Care Proxy

A document that empowers an agent to make medical decisions for a principal who is unable to make those decisions for himself or herself.

Agent

A party who has the authority to act on behalf of and bind another party.