Transactions Costs Are the

question 131

Multiple Choice

Transactions costs are the

• A) costs of using the Coase theorem.
• B) opportunity costs of conducting a transaction.
• C) external marginal costs of the externality.
• D) reason why taxes cannot affect the inefficiency resulting from an external cost.
• E) external costs when a firm pollutes.

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Definitions:

Ecosystem Function

The natural processes and interactions that maintain the biodiversity and balance within an ecosystem, such as nutrient cycling and energy flow.

Decomposers

Organisms that break down dead or decaying organisms, and in doing so, carry out the natural process of decomposition.

Photosynthesis

Process, usually occurring within chloroplasts, that uses solar energy to reduce carbon dioxide to carbohydrate.

Autotroph

Organism that can capture energy and synthesize organic molecules from inorganic nutrients.