Explain why the transactions costs involved with trying to acquire 100 acres of land from one landowner are probably going to be less than the transactions costs involved with trying to acquire 10 acres of land from each of 10 different landowners
What will be an ideal response?
Striking deals to purchase land can be time consuming and costly. When dealing with only one landowner, only one deal must be struck and involve attorney's fees, banking fees, and appraisal fees for just that one piece of land. When dealing with 10 different landowners, 10 separate deals must be struck, and each deal may involve separate fees for attorneys, banks, and appraisers.
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If black markets help people meet their needs, they will tend to ________ created by the restrictive government policies
A) increase the absolute advantage B) reduce the deadweight losses C) reduce the cooperative surpluses D) increase the tax revenues
Which of the following statements correctly characterizes the colonial commodity trade deficit?
a. The Middle colonies had the largest commodity trade deficit. b. The Southern colonies exported more to Great Britain & Ireland than they imported. c. The colonies experienced commodity trade deficits not only in their trade with England, but also in trade with Southern Europe and Africa. d. The colonies had a commodity trade deficit with Great Britain, but a commodity trade surplus once all trades were taken into account.
Which of the following is true? a. Economists assume that there are no private property rights in a free market
b. A free market is also known as a fettered market. c. A voluntary transaction means that all parties to the transaction must expect to benefit. d. People always receive goods and services at a discounted price in a free market. e. An economic growth is represented by an inward shift of the production possibility curve.
When China devalues its currency
a. the dollars per Chinese yuan will increase b. the drain of U.S. reserves on Chinese yuan will fall. c. U.S. exports to China will increase. d. the price of imported Chinese textiles in the U.S. will fall. e. Chinese imports will increase.