Which of the following is an example of a transaction cost?
a. fees for attorneys negotiating the agreement
b. the damage done to the environment by a negative spillover
c. the money transferred between parties to purchase equipment
d. taxes collected on the goods whose production causes pollution
a. fees for attorneys negotiating the agreement
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Mulch is shredded wood and is a by-product in the production of lumber. Because these two goods are produced together, they are
A) complements in production. B) substitutes in production. C) inputs into the same production process. D) not related. E) normal goods in production.
The purpose of the IMF is to
a. make short-term loans to countries facing balance of payments problems b. help governments combat their inflation c. fix exchange rates d. administer the foreign exchange market e. buy and sell IMF bonds to keep the world's currencies in equilibrium
The relationship between the velocity of money and interest rates is:
A. negative and stable. B. negative but not stable. C. positive but not stable. D. positive and stable.
When computing the opportunity cost of attending a basketball game you should include
a. the price you pay for the ticket and the value of your time.
b. the price you pay for the ticket, but not the value of your time.
c. the value of your time, but not the price you pay for the ticket.
d. neither the price of the ticket nor the value of your time.