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.

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Definitions:

Muscle Strength

Describes the maximum amount of force a muscle or group of muscles can exert during a single effort.

Olfaction

The sense of smell, a chemical sense by which individuals perceive odors.

Sense

A faculty by which the body perceives an external stimulus; one of the faculties of sight, smell, hearing, taste, and touch.

Smell

A sense that detects and identifies odors through organs in the nasal cavity, contributing to taste and perception of the environment.