Economics

Analyze the characteristics that make every transaction possible and justify the importance of each of the characteristics. 2. Evaluate the role institutions play in transactions and discuss the likely economic impact if institutions did not exist. Provide specific examples to support your response. Some of the characteristics I maxim is that you have a voluntary exchange amidst deuce persons for the close to simplistic transaction and each person is chthonian the photograph that it leaves them both smash off. It can in no port be a forced situation or against the result of the opposing party. There has to be the benefit of an intent or service being exchanged. The ultimate goal is for every whizz to be better off. If a party isnt benefiting from the work than basically it is senseless. basically there has to be a difference between the vendors opportunity cost and the buyers military rank which is known as the economic value. In the expression that one good is bar tered for another instead of using cash it soundless is consider beneficial and a transaction (Michaels, 2011). The environment is define by economic institutions they allow heap to pose and strike transactions.

If economic institutions did not exist we would have people who separate and sell goods that are knowingly black without any boundaries or laws. This is why the criminal law is a particularize that affects trade transactions (Michaels, 2011). Criminal laws threaten people with consequences of penalty that is profound enough to alter peoples decisions to do illegal things. Even with the laws in place crimes continue to exist, barely with! out them our beau monde would be truly chaotic. Reference Michaels, R.J. (2011). Transactions and strategies: Economics for safety (1st ed.). Upper saddle River, NJ: Cengage.If you want to get a full essay, order it on our website: BestEssayCheap.com

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