Part I: True/False (In this section, write whether each statement is true or false for the question that is posed) (9 points in total) 1. Trust is form of informal institution that discourage opportunistic behavior in economic transaction. (1 point) 2. In New institutional economic theory economic agents are assumed to have symmetric information. (2 points) 3. In the new institutional economic view institutions can have the effect of either facilitating or retarding economic growth. (1 point) 4. The frequency of transaction determines the level of transaction costs. (1 points)

True - Trust is indeed considered an informal institution that can discourage opportunistic behavior in economic transactions. It can reduce the need for formal contracts and enforcement mechanisms, thereby lowering transaction costs.

False - New institutional economics does not assume that economic agents have symmetric information. In fact, it often focuses on situations where information is asymmetric (i.e., one party has more or better information than the other), which can lead to problems such as adverse selection and moral hazard.

True - According to the new institutional economics view, institutions can indeed either facilitate or retard economic growth. They can provide the rules and enforcement mechanisms that make economic activity more predictable and less risky, thereby promoting growth. But if they are poorly designed or enforced, they can also create uncertainty and inefficiency, thereby hindering growth.

True - The frequency of transactions can affect the level of transaction costs. More frequent transactions can lead to economies of scale and learning effects that reduce per-transaction costs. But they can also increase the total costs if they involve complex or risky activities that require a lot of time and resources to manage.