Contracts can avoid transaction costs
Indicate whether the statement is true or false
F Contracts lead to transaction costs because every possible eventuality cannot be anticipated by parties to the contract and protected against.
You might also like to view...
Which of the following statements is true?
A) Advancements in statistical methods and data collection have made it possible for the Fed to closely link the changes in the rate of growth in M1 and M2 with changes in the rate of growth of GDP . B) The introduction of new financial products and changes in the ways people pay for transactions have blurred the distinction between M1 and M2 so that the Fed no longer has reliable estimates of the money demand curve. C) With the proliferation of new financial products, the close relationship between M1 growth and output growth has been further strengthened. D) Unlike the demand for M1, the demand for the much broader M2 money aggregate is unaffected by the financial innovation in interest bearing checking deposits.
Which of the following observations would be consistent with the imposition of a binding price ceiling on a market? After the price ceiling becomes effective,
a. a smaller quantity of the good is bought and sold. b. a smaller quantity of the good is demanded. c. a larger quantity of the good is supplied. d. the price rises above the previous equilibrium.