Which of the following statements is true?
A) Explicit costs are accounting costs, not economic costs; implicit costs are economic costs, not accounting costs.
B) Economic costs include both explicit costs and implicit costs.
C) An explicit cost is an actual cost; an implicit cost is a theoretical cost.
D) An explicit cost is more important, dollar for dollar, than an implicit cost.
B
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According to the Coase approach, to achieve socially optimal outcome, two sides must bargain. The bargaining might not be successful because
A) transaction costs are ignorable. B) firms engage in strategic bargaining. C) both sides have perfect information. D) None of the above.
Define international trade and international financial transactions. Give an example of each one.
What will be an ideal response?