Which of the following is the best example of a transactions cost?
A) the value of the time spent negotiating a contract
B) the price of a new set of tires
C) the cost associated with producing a golf club
D) the price of labor and materials used to produce a house
E) the price of food
A
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The marginal cost of pollution abatement is represented by
A) an upward sloping curve. B) a downward sloping curve. C) a horizontal curve. D) a vertical curve.
A government might use tax to:
a) Discourage consumption of goods with positive externalities b) Discourage consumption of public goods c) Discourage consumption of merit goods d) Discourage consumption of goods with negative externalities
Current account transactions are all payments that are related to the purchase or sale of
A) goods only. B) services only. C) goods and services only. D) goods and services excluding government purchases.
Which of the following are examples of market signals?
A. extracurricular activities B. education C. warranties D. all of the above