In the Presence of Asymmetric Information,a Contingent Contract

question 77

Multiple Choice

In the presence of asymmetric information,a contingent contract

• A) achieves production efficiency.
• B) can lead to opportunistic behavior on the part of the agent.
• C) is impossible to write.
• D) will result in the principal earning all of the profit.

---

Definitions:

Manhood

Manhood refers to the state or condition of being a man, often associated with attributes such as strength, maturity, and responsibility, as defined by societal standards.

Property Rights

The legal rights to own, use, and dispose of land, buildings, or belongings.

Free-Black Communities

Social and economic enclaves formed by African Americans who were not enslaved, often found in Northern states and some Southern cities before the Civil War.

Racial Residential Segregation

Describes the practice of living in separate neighborhoods or areas based on racial or ethnic backgrounds, often as a result of historical policies, economic disparities, or social practices.