A third party is a person, or persons, who
a. consumes goods produced from at least two intermediate inputs
b. avoids the transactions of the two principal parties
c. takes risks to avoid externalities
d. internalizes the costs of market failure
e. is imposed upon by the activity of others
E
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One similarity between the policy recommendations of the new classical and monetarist models is that
a. both believe that monetary policy has much stronger employment effects than does fiscal policy. b. are policy activists. c. both believe in the natural rate of output. d. both believe that discretion is preferable to rules. e. none of the above.
Between 1921 and 1929, general prices as measured by wholesale or consumer prices
(a) were stable overall. (b) fell dramatically. (c) increased moderately. (d) increased significantly.
The more complicated a production process is,
a. the lower the transactions cost of using markets b. the lower the cost of production c. the more likely the market will be used to organize production d. the more likely that transaction costs decrease through centralized control of production e. the more likely that transaction costs decrease through use of markets
In a free market for depletable natural resources, any shortage where there is an excess of quantity demanded over quantity supplied must be
A. temporary. B. due to a price floor. C. the result of discovery of new deposits of the resources. D. due to a price ceiling.