In the Absence of an Even-Handed Legal System, High Transaction

question 22

Multiple Choice

In the absence of an even-handed legal system, high transaction costs will eliminate many potential mutually advantageous trades and the accompanying gains from

• A) division of labor and specialization.
• B) expansion in the size of the market.
• C) economies of scale resulting from use of mass production methods.
• D) all of the above.