Which of the following is true regarding value and exchange?
a. Middlemen fail to create value since they do not expand the supply of physical goods.
b. A good or service has a given value regardless of who uses it or how it is used.
c. If it were not for middlemen, transaction costs would be zero.
d. Voluntary exchange creates value by channeling goods into the hands of people who value them most.
D
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Michael values a stainless steel refrigerator for his new house at $3,500, but he succeeds in buying one for $3,000 . Michael's willingness to pay is
a. $500. b. $3,000. c. $3,500. d. $6,500.
Which of the following is true?
a. The empirical evidence indicates that the earnings gap between whites and blacks is entirely the result of employment discrimination. b. After adjusting for factors such as education, experience, and location, the earnings of black men are almost identical to the earnings of similar white men. c. If employers can hire equally productive minority employees at a lower wage than non-minorities, the profit motive provides a strong incentive to do so. d. Employers who discriminate against blacks and other minorities will have lower costs than rival firms that hire employees strictly on the basis of merit (productivity).
The institutionalist theory of inflation differs from that of the quantity theory by focusing on:
A. the rate of growth in the money supply. B. how firms determine wages and prices. C. the institutions that influence how the money supply is determined. D. the equation of exchange.
In general, which form of business organization has the greatest capacity to raise large sums of financial capital?
A. corporations B. sole proprietorships C. partnerships D. limited partnerships