Transaction Costs

question 63

Multiple Choice

Transaction costs:

• A) are incurred in the production process due to externalities.
• B) are eliminated when the government intervenes in a market with externalities.
• C) can keep private parties from solving externality problems.
• D) increase when taxes are imposed to correct negative externalities.

---

Definitions:

Prison Population

The total number of individuals incarcerated in a country's prison system at any given time.

Prison-Industrial Complex

A term used to describe the overlapping interests of government and industry that use surveillance, policing, and imprisonment as solutions to economic, social, and political problems.

Rehabilitation Programs

Initiatives designed to help individuals, often former prisoners or those recovering from addiction, reintegrate into society and lead productive lives.