The Transaction Costs of Writing and Enforcing Contracts Are Higher

question 19

Multiple Choice

The transaction costs of writing and enforcing contracts are higher in:

• A)countries with poorly enforced property rights.
• B)countries with stringent trade restrictions.
• C)all countries with good court systems.
• D)countries without political risks of property confiscation.

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Definitions:

Underages

Instances where the quantity or amount of something is less than what is expected, required, or legally necessary.

Personal Property Security Act

Legislation that governs the creation and registration of security interests in personal property to secure payment or performance of an obligation.

Repossessed

The act of taking back goods or property by a seller or lender from the buyer or borrower due to non-compliance with the terms of the sale or loan.

Resold

The act of selling an item or property again, especially after purchasing it from the original seller.