There Are Two Divorce Laws, a and B

question 149

Multiple Choice

There are two divorce laws, A and B. Under A, it takes only one person to agree to a divorce and the divorce is granted. Under B, it takes two persons to agree to a divorce before it is granted. According to Coase,

• A)there will be the same number of divorces under both laws if transaction costs are zero.
• B)there will be more divorces under law A.
• C)there will be more divorces under law B.
• D)taxes should be imposed on those parties who seek divorces.
• E)subsidies should be granted to those persons who unwillingly get divorces.

---

Definitions:

Purchase Decision Process

The stages a consumer goes through in deciding to buy a product or service, including recognition of need, information search, evaluation of alternatives, purchase, and post-purchase evaluation.

Advertisements

Public notices or announcements, typically promoting a product, service, or event, through various media channels.

Salespeople

Individuals who are employed to sell products or services to customers, using various techniques to persuade potential buyers and close sales.

Information Search

The process by which consumers seek and gather information about products, services, or ideas before making a purchasing decision.