The common habit of viewing middlemen as unproductive bandits on the highway of free trade assumes
A) transaction costs are zero.
B) information is a free good.
C) voluntary exchange is not mutually beneficial.
D) all of the above.
E) none of the above.
D
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Use the following graph to answer the next question.
At the profit-maximizing level of output, the profit earned by the perfectly competitive firm is given by the area
A. BCFG. B. 0AHE. C. ABGH. D. ACFH.
The term "market" refers to
A) physical structures only. B) locations where buyers and sellers physically meet. C) any arrangement that enables buyers and sellers to get information and trade with one another. D) trading arrangements that have been approved by the government.
A surplus in our balance of payments causes the dollar to __________, which causes the surplus to __________
A) appreciate; increase B) appreciate; decrease C) depreciate; increase D) depreciate; decrease
In the last 20 years, all of the following measures of the manufacturing sector have declined except:
a. total employment in manufacturing. b. manufacturing employment as a share of the labor force. c. manufacturing output as a share of GNP. d. total manufacturing output.