In a market system, the costs associated with exchanging goods are known as
A) voluntary costs.
B) signaling costs.
C) implicit costs.
D) transaction costs.

Question

Quizplus · Accepted Answer

Transaction costs refer to the expenses involved in buying or selling goods or services, including search costs, negotiation costs, and legal fees. These costs can impede market transactions and affect the efficiency of the market system.

In a Market System, the Costs Associated with Exchanging Goods