Asked by
Chrishundra Caldwell
on Dec 12, 2024
Verified
A nation with cheap, efficient communications is likely to be
A) richer, ceteris paribus, because transaction costs will be lower and trade greater.
B) richer only if production of goods is cheaper, too, since trade itself cannot create value.
C) poorer since it spends so much on communication instead of true productivity.
D) spending too much on communications, which adds nothing to the value of output.
Communications
The act or process of exchanging information and ideas through various mediums and platforms.
Transaction Costs
Expenses incurred when buying or selling goods and services, encompassing fees, taxes, and other costs.
- Appreciate the role of technology and efficient communication in reducing transaction costs and enabling greater volumes of trade.
Verified Answer
BA
Learning Objectives
- Appreciate the role of technology and efficient communication in reducing transaction costs and enabling greater volumes of trade.