Which of the following best describes the relationship between transaction costs and conformity costs?
A. The relationship is inverse as efforts to reduce transaction costs serve to increase conformity costs.
B. It is a positive relationship as lower transaction costs result in lower conformity costs.
C. It depends on the nature of the political institutions established in a nation's constitution.
D. There is no relationship between these costs because they address separate concerns.
Answer: A
You might also like to view...
The collapse of the cod fishing industry off the coast of New England is an example of which of the following?
A. the tragedy of the commons B. the ends justifying the means C. representative government D. good policy poorly implemented
The military authority given to the governor by the state constitution includes __________.
A. his or her role as commander-in-chief of the military forces of the state and the ability to declare wars on other states B. the ability to appoint an adjutant general and to prohibit Texans from joining the U.S. military when the state is threatened C. the ability to direct the actions of U.S. Border Patrol agents in Texas and the ability to create military schools in the state D. his or her role as commander-in-chief of the military forces of the state and the ability to mobilize the Texas National Guard to protect lives and property in the state
According to the "A Constitutional Note" feature box, for which of the following did Congress issue an official declaration of war?
a. the war in Iraq b. the war in Afghanistan c. the Vietnam War d. World War II
Why did the Framers have such a pervasive fear of political parties?
A. The rigidity of the party system in the colonies generated a great deal of free riding and nearly undermined the American Revolution. B. The strength of the British crown was rooted in the party system. C. Historical experiences about the dangers that resulted from factional strife along with 18th century social beliefs caused the fear. D. Because men could not be trusted, any permanent alliances would naturally lead to tyranny.