Without trust
A) All individuals act selfishly
B) All individuals must act altruistically.
C) Economic transactions become more costly.
D) Individuals will act spitefully.

Question

Quizplus · Accepted Answer

Without trust, economic transactions become more costly because parties must spend more on monitoring, enforcement, and insurance against potential breaches of agreement. Trust reduces the need for such measures, making transactions smoother and less expensive.

Without Trust