In a market system, the costs associated with exchanging goods are known as
A. voluntary costs.
B. opportunity costs.
C. signaling costs.
D. transaction costs.
Answer: D
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The economic way of thinking should be thought of as
A) a hypothesis. B) a parable. C) a set of conclusions. D) an approach. E) a statistical procedure.
Neil and Derek are brothers who are very fond of watching television. They share a television but watch different shows. Every evening after coming home from school, they argue over who will watch television and for how long
Irritated with their fight, their parents asked Neil to decide for how long each of them would watch television. They also told him that if the brothers failed to reach an agreement, they would not let either of them watch it. a) How should Neil make his decision? b) What will be the outcome if Derek prefers fairness over watching television?
Current research suggests that countries that adopt a pegged exchange rate may be more vulnerable to an exchange rate crisis
Indicate whether the statement is true or false
Normative economics is
a. an event is explained according to the laws of economics. b. an explanation of the way things ought to be, the explanation involves a value judgement on the part of someone. c. the study of foreign countries. d. the study of our banking system.