An Example of a "Hidden" Production Function Is Money Transfers

question 105

True/False

An example of a "hidden" production function is money transfers at banks.

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Definitions:

Economic System

A particular set of institutional arrangements and a coordinating mechanism for solving the economizing problem; a method of organizing an economy, of which the market system and the command system are the two general types.

Institutional Arrangements

The formal and informal rules, organizations, and practices that structure economic, political, and social interactions in societies.

Coordinating Mechanism

A system or method used to align actions and activities among different parties to achieve a common goal or objective.

Economizing Problem

The choices necessitated because society’s economic wants for goods and services are unlimited but the resources available to satisfy these wants are limited (scarce).