A Nation with Cheap, Efficient Communications Is Likely to Be

question 145

Multiple Choice

A nation with cheap, efficient communications is likely to be

• A) richer, ceteris paribus, because transaction costs will be lower and trade greater.
• B) richer only if production of goods is cheaper, too, since trade itself cannot create value.
• C) poorer since it spends so much on communication instead of true productivity.
• D) spending too much on communications, which adds nothing to the value of output.

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Definitions:

Vendor Summary

A report or overview that shows the amounts owed to and transactions made with suppliers or service providers.

Purchase of Services

The acquisition of professional assistance, labor, or expertise in exchange for payment.

Inventory Items

Goods or products that a company holds in stock with the intent to sell as part of its business operations.

Vendor Reports

Analytical summaries prepared to outline business transactions and performance metrics related to suppliers and vendors.