Transaction Costs of Private Contracts Are Higher

question 61

Multiple Choice

Transaction costs of private contracts are higher:

• A)when direct contact between economic actors is frequent.
• B)when the number of actors involved is relatively small.
• C)when the economic actors involved are more homogenous.
• D)when large specific investments have been made.

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Definitions:

Intentional Tort

A wrongful act done on purpose, the perpetrator being aware of their actions aiming to cause harm or injury.

Misdemeanor

A Misdemeanor is a criminal offense that is less severe than a felony and generally punishable by fines or a jail term of less than one year.

Defense of Property

The legal justification for using reasonable force to protect one's property from being damaged or stolen.

Self-defense

A legal defense that involves protecting oneself or others from immediate harm by using reasonable force.