11 May QuestionIn parts of Eastern Europe, companies maintain s
Question
In parts of Eastern Europe, companies maintain special guards to protect payday funds, to help move products to market, and to enforce immediate payment for products sold to retailers. All of these features indicate:
that property rights are respected and transactions costs are low.
that property rights are weak and transactions costs are low.
that property rights are weak and transactions costs are high.
that property rights are respected and transactions costs are high.
4 points
Question 2
The transactions costs of writing and enforcing contracts are higher in:
countries with poorly-enforced property rights.
countries with strongly-enforced property rights.
all counties with good court systems.
countries without political risks of property confiscation.
4 points
Question 3
Firm specific assets, costs or measuring quality, externalities, and coordination problems all may mitigate against:
vertical integration.
long term markets.
open markets.
efficient production methods.
4 points
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