Which One of the Following Is Not Generally a Transactions

question 69

Multiple Choice

Which one of the following is not generally a transactions cost?

• A)the fee to a broker for buying stocks
• B)the cost of a lawyer who drafts a contract
• C)the cost of hiring someone to find you a supplier of raw materials
• D)the cost of the owner's time in a sole proprietorship
• E)the cost of phone calls made to find a buyer

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Definitions:

Consumption

The use of goods and services by households or individuals, typically referring to the final use that directly satisfies human needs or wants.

Disposable Income

Money freed up for households to allocate towards savings and spending after income tax removal.

Induced Consumption

The portion of consumer spending that rises when disposable income rises and falls when disposable income decreases.

Autonomous Consumption

The minimum level of spending that must occur, even if a household has no income.