Institutions do which of the following?
A)Reduce uncertainty.
B)Signal which conduct is acceptable and which is not.
C) Reduce opportunism and transaction costs.
D) All of the above.

Question

Quizplus · Accepted Answer

Institutions perform all of the listed functions. They reduce uncertainty by providing a stable and predictable environment for economic and social activities. They signal acceptable and unacceptable conduct through laws, rules, and norms. They also reduce opportunism and transaction costs by facilitating cooperation and mutual trust among participants in economic activities.

Institutions Do Which of the Following