Contracts can avoid transaction costs
Indicate whether the statement is true or false
F Contracts lead to transaction costs because every possible eventuality cannot be anticipated by parties to the contract and protected against.
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All of the following household expenditures are included in consumption expenditure EXCEPT
A) payment to a dentist for filling a tooth. B) purchase of corporate stock. C) purchase of a new purse. D) purchase of hair styling.
Suppose a cost function is TC = Aq3 + bq2 + cq + d. Then the average variable cost is
a. Aq2 + bq + cq +d/q b. Aq2 + bq + c c. Aq3 + bq2 + cq d. d
How do workers typically express self-interest?
A. By minimizing the economic losses of other business firms. B. By maximizing the economic profits of other business firms. C. By seeking jobs with the best combination of wages and benefits. D. By seeking the highest price when purchasing a consumer product.
moral hazard
What will be an ideal response?