Transaction Costs Are

question 11

Multiple Choice

Transaction costs are:

• A)the price paid for a good
• B)the cost that society places on a good
• C)what it costs two parties to negotiate with each other
• D)the same as a Pigovian tax

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Definitions:

Decisive

Characterized by or displaying no or little hesitation; firm or determined in making choices or decisions.

Priming

A psychological effect in which exposure to a stimulus influences a response to a subsequent stimulus, without conscious guidance or intention.

Insight

The capacity to gain an accurate and deep intuitive understanding of a person or thing, often leading to a sudden realization.

Availability Heuristic

A cognitive shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method, or decision.