Costs that pertain to finding a trading partner and making a trade are called

A) transaction costs.
B) transgression costs.
C) consumption costs.
D) transaction taxes.


A

Economics

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Assume that the currency—deposit ratio is 0.5. The Federal Reserve carries out open-market operations, purchasing $1 million worth of bonds from banks. This action increased the money supply by $2 million. What is the reserve—deposit ratio?

A) 0.25 B) 0.35 C) 0.40 D) 0.50

Economics

If insurers charge everyone the same premium based on the average cost of insuring the entire group, _____

a. the poor will drop out because the premiums are too high b. the middle class individuals will drop out because they can self-insure c. the healthiest individuals in the market will drop out d. the sickest individuals in the market will drop out

Economics

The Patersons bought a home that was newly constructed in 2007 for $275,000 . They sold the home in 2015 for $255,000 . Which of the following statements is correct regarding the sale of the house?

a. The 2015 sale increased 2015 GDP by $255,000 and had no effect on 2007 GDP. b. The 2015 sale reduced 2015 GDP by $20,000 and had no effect on 2007 GDP. c. The 2015 sale increased 2015 GDP by $255,000; and caused 2007 GDP to be revised downward by $20,000. d. The 2015 sale affected neither 2007 GDP nor 2015 GDP.

Economics

The Norwegian government uses $500,000 of previously obtained U.S. dollars to buy $500,000 of police cars from a U.S. company. As a result of this exchange, by how much, if at all, and in which direction did: A. U.S. net exports change? B. U.S. net capital outflow change?

Economics