Transaction costs are likely to be ________ when property rights are ________ clearly defined
A) lower ; less
B) higher; more
C) lower; more
D) Trick question: there is no causal relationship between transaction costs and property rights.
C
You might also like to view...
Demand-pull inflation persists because of
A) continuing increases in government expenditures. B) continuing increases in the quantity of money. C) continuing increases in the real wage rate. D) continuing decreases in the money wage rate. E) continuing increases in aggregate supply.
The term underground economy refers to
a. the coal-mining industry b. all ore mining c. the subway system d. purely illegal activity e. market activity not reported to the government
A pervasive tradeoff in financial markets relates risk to expected returns. Which of the following statements reflects this relationship?
a. The higher the risk of an asset, the lower the expected return on the asset. b. There is usually no relationship between risk and return. c. The higher the risk of an asset, the higher the expected return on the asset. d. The return on an asset is normally positively related to the risk of comparable assets. e. The return on a risky asset cannot be compared with the return on a risk free asset.
When a market is in equilibrium,
a. quantity demanded equals quantity supplied b. quantity demanded exceeds quantity supplied c. the demand curve is identical to the supply curve d. the economy must be at a point along the production possibilities frontier e. the law of demand is equivalent to the law of supply