00:03
Which of the following is not an example of a transaction cost.
00:07
A, the opportunity cost of time spent looking for stores selling the desired item.
00:12
B, the cost of returning a defective product.
00:15
C, the enjoyment of using the good.
00:18
Or d, the time and effort spent researching the product as well as its various sellers.
00:23
Transaction costs are expenses that are incurred when buying or selling a good or service.
00:28
As such, the correct answer here is c, the enjoyment of using the good.
00:33
C, you're using the good, not buying or selling it, so it's not a transaction cost.
00:43
The government's imposition of price control, a, increases gains from trade, b, benefits only poor consumers, c, harms producers and wealthy consumers, or d, reduces gains from trade.
00:59
Price controls in an economic policy imposed by governments that set minimums or floors, and or maximums or ceilings for the prices of goods and services.
02:03
They're in position of price controls, b, benefits only poor consumers.
02:08
And the reason for this is they're going to benefit from things like a price ceiling because if something can't go over a certain price, poor people or poor consumers are going to benefit from that.
02:19
Wealthy consumers really don't care about price ceilings or price floors because they can afford the item or the good anyway.
02:28
Black markets usually arise when there are a, price floors, b, price ceilings, c, price quotas, or d, price subsidies...