Transactions Costs Are

question 26

Multiple Choice

Transactions costs are:

• A)the costs of establishing and maintaining property rights.
• B)the costs of exploiting economic resources for production.
• C)very expensive.
• D)caused when people impose externalities on others.

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Definitions:

Dissonance Theory

A theory that suggests people are motivated to reduce the discomfort (dissonance) caused by inconsistencies between their beliefs and their actions.

Balance Model

A theoretical framework for understanding how different elements within a system maintain a state of equilibrium or balance.

Elaboration Likelihood Model

A theory in social psychology that explains different ways of processing stimuli, why they are used, and their outcomes on attitude change, distinguishing between central and peripheral routes.

Infomercial

A television program that combines information and advertisement to promote a product or service in an informative manner.