Private Solutions May Not Be Possible Due to the Costs

question 459

Multiple Choice

Private solutions may not be possible due to the costs of negotiating and enforcing these solutions. Such costs are called

• A)transaction costs.
• B)corrective costs.
• C)input costs.
• D)private costs.

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Definitions:

Statute of Frauds

A law requiring certain types of contracts to be written and signed in order to be legally enforceable.

Charitable Tax Relief

Tax deductions or exemptions granted to donors of charitable contributions, incentivizing the support of non-profit organizations.

Unenforceable

Pertaining to a contract or agreement that, due to certain defects or legal principles, cannot be legally imposed or executed.

Verbal Agreement

denotes a contract or agreement made through spoken words rather than written documents, which can be legally binding if it meets specific criteria.