Private Solutions Often Are Not Possible Due to the Costs

question 171

Multiple Choice

Private solutions often are not possible due to the costs of negotiating and enforcing these solutions. Such costs are called:

• A)​transaction costs.
• B)​external costs.
• C)​deadweight losses.
• D)​social costs.

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Definitions:

Gross Domestic Product

The aggregate value of all products and services finished within a nation's boundaries over a distinct timeframe, measured in monetary or market terms.

Gross National Product

The total value of all goods and services produced by a country's residents in a specific time period, including international activities.

Output

The amount of goods or services produced by a company, country, or economic system.

Human Development Index

An index measuring average achievements in a country in three basic dimensions of human development: long and healthy life, knowledge, and a decent standard of living.