If Transactions Costs Are High and the Number of Individuals

question 40

True/False

If transactions costs are high and the number of individuals involved is large,initial assignment of property rights is important to economic efficiency.

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Definitions:

Currency Control

Regulations imposed by a government on the purchase and sale of foreign currencies by residents or on the transfer of currencies across national borders.

Deregulation

The reduction or elimination of government power in a particular industry, often to increase competition and foster innovation.

Currency Control

Government policies or regulations that restrict the exchange of the domestic currency for foreign currencies.

Fixed Exchange Rate

A government or central bank policy that pegs the country's currency to another currency or to a reference value, such as gold, and does not allow it to fluctuate freely in the Forex market.