Answer: D) cyclical
Explanation:
Cyclical Demand is difficult to predict because it goes according to the business cycle and hence is affected on a Macro Economic scale by events at a National or International level.
This means that something could be in demand today but the demand could fall or rise sharply based on the stage of the business cycle the economy is in.
Answer:
The correct answer is option B, C, and E.
Explanation:
Transaction cost refers to the cost incurred on resources and time necessary for facilitating exchange of goods and services.
Among the given options, the examples of transaction cost is cost of monitoring an agreement, the cost of drafting a contract or agreement, and the time required to negotiate an agreement.
All these costs are incurred in order to facilitate exchange of goods and services.
The problem of externalities can have efficient private solution if these transaction costs are low otherwise the governement has to intervene to efficiently allocate resources.
I would say the duration of unemployment rises. A recession means that for example in the mining industry the prices of metals falls so the result is that often companies cut back on production and lay workers and staff off, or sometimes shut whole mines down completely. So the employers have a harder time to pay their workers because they may not be making a profit anymore. In mining and mineral exploration these recessions or depressions are cyclical in the capitalist system and usually last at least 4-5 years often with no work for mining people.
Answer:
Opportunity cost
A trade-off
Explanation:
Opportunity cost measures the cost of a choice made in terms of the next best alternative foregone or sacrificed.
Trade-off arises where having more of one thing potentially results in having less of another.