Three Difficulties That Limit the Usefulness of Ownership in Resolving

question 28

Multiple Choice

Three difficulties that limit the usefulness of ownership in resolving incentive problems are:

• A)wealth constraints,free-riding,and bundling.
• B)risk aversion,free-riding,and conflict of interests.
• C)wealth constraints,risk aversion,and bundling.
• D)wealth constraints,risk aversion,and free-riding.

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Definitions:

Excess Bleeding

Unusually heavy or prolonged bleeding, which can be a symptom of various disorders or a side effect of medications or procedures.

Physiologic Fatigue

A state of decreased energy and increased tiredness following mental or physical activity, natural and not indicative of a disease.

Anorexia

An eating disorder characterized by an abnormally low body weight, an intense fear of gaining weight, and a distorted perception of body weight or shape.

Pregnant Female

A woman who is in the stage of carrying a developing embryo or fetus within her womb.