In Economics, the Term That Refers to the Time, Effort

question 217

Multiple Choice

In economics, the term that refers to the time, effort, and other resources needed to search out, negotiate, and consummate an exchange is

• A) transaction costs.
• B) specialization costs.
• C) pecuniary costs.
• D) comparative costs.

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Definitions:

Compounded Quarterly

An interest calculation method where the accrued interest is added to the principal four times a year, increasing the amount on which future interest is computed.

Quarterly Profits

The net earnings or losses of a company calculated every three months within a fiscal year.

Patent

A legal authorization granted to an inventor to exclusively manufacture, use, or sell an invention for a certain number of years.

Ordinary Annuity

A series of equal payments made at regular intervals, with interest compounded at the end of each period.