Over time, when the scale and scope of informal transactions ________, the cost per transaction move down and benefits move up.
A)Expand
B)Contract
C) Are eliminated
D) Increase through opportunism

Question

Over time, when the scale and scope of informal transactions ________, the cost per transaction move down and benefits move up.
A)​Expand
B)​Contract
C) ​Are eliminated
D) ​Increase through opportunism

Quizplus · Accepted Answer

When the scale and scope of informal transactions expand, it leads to more efficiency in the transaction process, resulting in reduced costs per transaction and increased benefits for both parties involved. This is because informal transactions thrive on mutual trust, social norms, and relationships, which grow stronger with repeated interactions and larger networks.

Over Time, When the Scale and Scope of Informal Transactions