Before Banking Became Prominent in the Nineteenth Century,affluent People Had

question 19

Multiple Choice

Before banking became prominent in the nineteenth century,affluent people had a lot of all but which of the following?

• A)cash
• B)jewels
• C)livestock
• D)slaves
• E)land

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Definitions:

Coase Theorem

A theory suggesting that if trade in an externality is possible and there are no transaction costs, bargaining will lead to an efficient outcome regardless of the initial allocation of property.

Coase Theorem

A legal and economic theory stating that if trade in an externality is possible and there are no transaction costs, bargaining will lead to an efficient outcome regardless of the initial allocation of property rights.

Transaction Costs

The expenses incurred when buying or selling a good or service, which can include search, bargaining, and enforcement costs.

Marginal Social Benefit

The additional benefit to society resulting from one more unit of a good or service being produced and consumed.