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10 April, 18:09

Suppose the U. S. House of Representatives is debating a bill to fund construction and maintenance for the nation's highway system. Representative Sandy Shady adds a provision to the bill that would fund a new public art museum in her district. The authorization of expenditure for the museum would be an example of

(A) an earmark.

(B) an unfunded liability.

(C) a collective action problem.

(D) a principal-agent problem.

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  1. 10 April, 19:04
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    A) an earmark.

    Explanation:

    An earmark -

    It refers to the monetary value spend for establishing or building some particular institution, project, museum, is referred to as an earmark.

    The earmark also work as a tool for the process of any deal or negotiation.

    Hence, from the given scenario of the question,

    The correct option is A) an earmark.
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