Which of the following is NOT an example of a transaction cost?
A. the cost of returning a defective product
B. time spent bargaining over the price of a good
C. the enjoyment of owning the good
D. the opportunity cost of time spent looking for stores that sold the good desired
Answer: C
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Suppose IBM purchases a factory in Japan. This purchase is entered into which of the balance of payments accounts?
A) capital and financial account B) official settlements account C) trade account D) purchases account E) current account
The primary distinction between an expenditure that is on budget and an expenditure that is off budget is _____
a. that all off-budget expenditures are entitlements b. that all on-budget expenditures are public goods or quasi-public goods c. that Congress has determined the expenditures should be on budget or off budget d. a and b
People continue to value money because they have confidence in its convertibility into goods and services
a. True b. False Indicate whether the statement is true or false
Economists call all the goods generated by a firm its total ______.
a. margin b. output c. production d. sales