Transactions Costs Are the

question 131

Multiple Choice

Transactions costs are the

• A) costs of using the Coase theorem.
• B) opportunity costs of conducting a transaction.
• C) external marginal costs of the externality.
• D) reason why taxes cannot affect the inefficiency resulting from an external cost.
• E) external costs when a firm pollutes.

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Definitions:

Democratic

Pertaining to or characterized by the principles of democracy, involving fair and equal participation and representation of the people in the decision-making process.

Laissez-Faire

A leadership or management style characterized by a minimal amount of direct supervision, allowing individuals or teams considerable freedom in their work.

Transactional Leader

A leadership style focused on the exchange between leader and followers, where compliance is exchanged for specified rewards.

Transformational Leader

A leadership approach that causes change in individuals and social systems, by creating a vision to guide the change through inspiration, and executing the change in tandem with committed members of a group.