In the absence of an even-handed legal system, high transaction costs will eliminate many potential mutually advantageous trades and the accompanying gains from
a. division of labor and specialization.
b. expansion in the size of the market.
c. economies of scale resulting from use of mass production methods.
d. all of the above.
D
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Holding supply constant, an increase in demand leads to
A) lower prices and higher quantity supplied. B) lower prices and lower quantity supplied. C) higher prices and higher quantity supplied. D) higher prices and lower quantity supplied.
An asset is liquid if it
A) is of intrinsic value. B) can be exchanged for other goods and services. C) is a store of value. D) can be obtained or disposed of without losing much of its nominal value.
Vickery auctions are
a. Oral auctions b. Second price sealed bid auctions c. English auctions d. None of the above
It is Valentine's Day and Jason is desperately looking all over town for a dozen roses to give to Judy. Most likely, Jason's price elasticity of demand is:
a. infinitely large. b. negative. c. equal to one. d. greater than one. e. less than one.