A) is the only way to eliminate scarcity.
B) is a nonprice rationing device.
C) is trading so that the consumer and producers are better off.
D) involves no transactions costs.
Which of the following is NOT an example of a transaction cost?
A) the enjoyment of owning the good
B) the opportunity cost of time spent looking for stores that sold the good desired
C) the cost of returning a defective product
D) time spent bargaining over the price of a good
Individuals who specialize in activities that lower transaction costs are
Which of the following is NOT a device to reduce transaction costs?
A) shopping centers
B) auto dealers located close together
C) government prohibitions on advertising
D) banks that direct funds from savers to borrowers