Markets Are Usually Preferred by Economists for Efficient Transactions

question 42

Multiple Choice

Markets are usually preferred by economists for efficient transactions. However, Ronald Coase noted that administrative solutions may be superior because market transactions are:

• A) never at the equilibrium price.
• B) not costless.
• C) always result in a price that clears the market.
• D) hindered by technological change.

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Definitions:

Immediate Environment

denotes the direct surroundings or conditions in which a person lives or operates, impacting their behavior and development.

Incremental Change

Gradual alterations or developments over time that accumulate to produce significant overall change.

Continuous Process

An ongoing operation that does not have a clear beginning or end.

Theoretical Models

Abstract, conceptual frameworks used to explain and predict phenomena, allowing for the systematic exploration of ideas and hypotheses.