Transaction costs are best defined as the
A) various costs of different goods and services.
B) cost of one good in terms of another; that is, the price of apples in terms of oranges.
C) costs involved in borrowing money from someone, that is, the interest that must be paid for the use of someone else's money.
D) costs associated with the time and effort necessary to make an exchange.
D
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Name two macroeconomic variables that decline when an economy goes into recession, and name one macroeconomic variable that rises
Which of the following is most likely to be a major source of growth in per capita GDP?
A. a high investment / GDP ratio B. a high rate of inflation C. rapid population growth D. rapid growth in the money supply
Answer the following questions true (T) or false (F)
1. In a two-good, two country world, if one country has a comparative advantage in the production of one good, it can benefit by trading with the other country. 2. For a person to have a comparative advantage in producing a product, he must be able to produce that product at a higher opportunity cost than his competitors. 3. It is not possible to have an absolute advantage in producing a good or service without having a comparative advantage.
The production given up of the one item is the
What will be an ideal response?