Economics

Analyze the characteristics that make every transaction possible and warrant 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 truism is that you have a voluntary exchange amidst deuce persons for the most simplistic transaction and each person is chthonian the impression that it leaves them both better off. It can in no way be a forced situation or against the will of the opposing party. There has to be the benefit of an intent or service being exchanged. The ultimate goal is for everyone to be better off. If a party isnt benefiting from the trade than basically it is senseless. Essentially there has to be a difference between the sellers opportunity cost and the buyers valuation which is known as the economic value. In the expression that one good is bartered for another instead of using cash it still is consider beneficial and a transaction (Michaels, 2011).
The environment is defined by economic institutions they allow heap to pose and settle transactions.



If economic institutions did not exist we would have people who steal and sell goods that are knowingly illegal 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 significant enough to alter peoples decisions to do illegal things. Even with the laws in place crimes continue to exist, barely without them our society would be truly chaotic.
Reference
Michaels, R.J. (2011). Transactions and strategies: Economics for precaution (1st ed.). Upper saddle River, NJ: Cengage.If you want to get a full essay, order it on our website: Orderessay



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