The signaling aspect of the market system refer to
A) legal requirements for contracts and exchanges.
B) the price of the good to the consumer and producer.
C) the voluntary character of the exchange.
D) transaction costs of carrying out exchanges.
Answer: B
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In a boom:
a) Unemployment is likely to fall b) Prices are likely to fall c) Demand is likely to fall d) Imports are likely to fall
In practice, oligopolistic markets are:
A. usually protected by the government. B. fairly common. C. forbidden by the government. D. very rare.
If the own-price elasticity of demand equals -0.2, then the price flexibility of demand is equal to
A) -0.2. B) -5. C) -0.4. D) None of the above
The total allowable catch (TAC) system differs from the individual transferable quota (ITQ) system in that:
A. TAC limits the total harvest of fish while ITQ does not B. ITQ limits an individual fishery's harvest, but TAC does not C. TAC prevents an "individual arms race" among fisheries, whereas ITQ does not D. ITQ does not offer significant cost-saving benefits, but TAC does