The principle that ʺinternal costs,ʺ which are the costs and benefits borne by the buyer and seller alone, represent the true and full economics of all transactions is a principle of _______________.
A) sustainable economies
B) classical economics
C) ecological economics
D) neoclassical economics
E) steady-state economics

Question

Quizplus · Accepted Answer

The principle that internal costs represent the true and full economics of all transactions is a central concept of neoclassical economics, which emphasizes the efficiency of markets in allocating resources. This principle is based on the assumption that buyers and sellers act rationally and take into account all costs and benefits when making transactions.

The Principle That ʺInternal Costs,ʺ Which Are the Costs and Benefits