There Are Two Major Components of Transaction Costs: Explicit Costs

question 58

True/False

There are two major components of transaction costs: explicit costs and implicit costs.

---

Definitions:

Social Forces

The structures, institutions, and social dynamics that influence individuals and groups in society, shaping behaviors, attitudes, and opportunities.

Self-Actualization

The achievement of realizing one’s own talents and capabilities, seen as a natural desire or necessity inherent in all people.

Physiological Needs

Fundamental human requirements such as air, water, food, shelter, and sleep, which are necessary for survival according to Maslow's hierarchy of needs.

Preoccupied

Being engrossed or absorbed in thoughts, concerns, or activities, often to the extent of being unaware of other things.