Which of the following is NOT a device to reduce transaction costs?
A. auto dealers located close together
B. government prohibitions on advertising
C. banks that direct funds from savers to borrowers
D. shopping centers
Answer: B
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When World War II (1941–45) came,
(a) the labor force expanded by very little despite the high unemployment of 1941. (b) unemployment was still high enough that the armed forces could be expanded and war production expanded without a large increase in the labor force. (c) a large increase in the labor force occurred in all categories, including men over 65 and women. (d) none of the above occurred.
Economists object to monopoly because
A. monopoly profits go to the rich. B. monopolies overproduce to maximize profits. C. monopolies are usually polluters. D. monopolists keep output below efficient levels.
If there is an expansionary gap in the short run, the adjustment to the long-run equilibrium involves expansion of aggregate demand
Indicate whether the statement is true or false
If Germany can make compact cars more efficiently than Russia, it enjoys
A. a comparative advantage. B. an absolute advantage. C. no advantage.