For voluntary action to correct an externality

A) transaction costs have to be high.
B) transaction costs have to be low.
C) transaction costs have to be split evenly between all of the parties involved.
D) transaction costs are irrelevant.

B

Economics

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Real GDP equals:

A. nominal GDP minus net exports. B. nominal GDP divided by the GDP deflator. C. nominal GDP multiplied by the GDP deflator. D. GDP minus depreciation.

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Explain the economic assumption that "people are rational."

What will be an ideal response?

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