Private solutions often are not possible due to the costs of negotiating and enforcing these solutions. Such costs are called:
a. transaction costs
b. external costs.
c. deadweight losses.
d. social costs.
a
You might also like to view...
Younger workers are:
A. Much more likely to migrate than older workers because younger workers have lower moving costs B. Much less likely to migrate than older workers because younger workers have more close friends at home C. Much more likely to migrate than older workers because younger workers have more human capital than older workers D. Much less likely to migrate than older workers because younger workers do not have as much experience
Suppose in the money market the equilibrium nominal interest rate is 5 percent. If the Fed increases the quantity of money, what is the effect on the nominal interest rate?
What will be an ideal response?
Trade policies
a. alter the trade balance because they alter imports of the country that implemented them. b. alter the trade balance because they alter net capital outflow of the country that implemented them. c. do not alter the trade balance because they cannot alter the national saving or domestic investment of the country that implements them. d. do not alter the trade balance because they cannot alter the real exchange rate of the currency of the country that implements them.
Deflation is a/an ________ in the average level of prices of goods and services.
A. increase followed by a decrease B. stagnation C. decrease D. increase