Before an exchange is made, people must have ______. a. a double coincidence of wants b. low transaction costs c. high transaction costs d. credit
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This is known as a "double coincidence of wants." Show more…
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The high transaction costs associated with a barter system refers to: Answer a. The fact that, often times, these exchanges are taxed by governments b. The risk associated with having to carry an inventory of goods to trade c. The high cost associated with finding someone with whom to exchange d. The cost of drawing up complete contracts
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As opposed to a payments system based on barter, a payments system based on money Select one: a. requires a double coincidence of wants. b. leads to less specialization. c. makes trades less costly. d. None of the above is correct.
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The main reason most international transactions require full payment before the buyer receives the merchandise is:_____. a. strict government regulations. b. an underlying lack of trust. an excess of factor endowments. c. to trigger lower tariffs. d. the inability to charge interest on the cost of goods.
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