Transaction Costs

question 203

Multiple Choice

Transaction costs

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

---

Definitions:

Intervertebral Disc

A fibrocartilaginous pad located between the vertebrae in the spine, acting as a shock absorber and allowing for flexibility.

Fibrocartilage

A type of tough, very dense, white connective tissue with a matrix containing collagen fibers, providing support and shock absorption.

Synchondrosis

A type of joint where bones are joined by hyaline cartilage, allowing very little or no movement between the bones.

Syndesmosis

A fibrous joint at which two bones are bound by long collagen fibers, allowing for minimal movement, typically found between the tibia and fibula.