Author Question: If the quality of an input is easily determined at the time of purchase, then it is likely to a. be ... (Read 18 times)

karateprodigy · **on:** Jun 30, 2018

If the quality of an input is easily determined at the time of purchase, then it is likely to
a. be the cause of high transaction costs of using markets
b. encourage vertical integration of a firm
c. encourage supplier firms to produce low-quality inputs
d. be produced internally by the firm
e. be purchased in the market

Question 2

Under a gold standard,
a. a nation's currency can be traded for gold at a fixed rate
b. a nation's central bank or monetary authority has absolute control over its money supply
c. new discoveries of gold have no effect on money supply or prices
d. prices are constant (there is no inflation and no deflation)
e. all international transactions are financed with gold