How Do Institutions Constrain Leaders and Inform Opponents

question 39

Multiple Choice

How do institutions constrain leaders and inform opponents?

• A)Leaders can easily hide their failed wars and avoid facing difficult elections due to them.
• B)Democracies have established rules for secrecy that prevent controversial actions from leaking to the public.
• C)Elections and public debates force leaders to commit to policies and risk punishment if they pursue bad policies.
• D)Infrequent elections allow leaders to make the right choices instead of popular ones.
• E)Democracies tend to have better taxation systems and general state capacity.

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Definitions:

Residual Equity

Residual Equity represents the amount of equity that remains for the common shareholders after all liabilities and preferential stock claims have been settled.

Assets

Assets are possessions of an individual or a business that hold value and can yield benefits in the future.

Liabilities

Financial obligations or debts that a company owes to outside parties, which must be paid back in the future.

Liabilities

Financial obligations or debts that an entity owes to others, which need to be settled over time via the transfer of economic benefits.