Which of the following is true regarding value, transaction costs, and exchange?
a. Middlemen can be viewed as agents who create value by reducing transaction costs and, thereby, facilitating gains from exchange.
b. Middlemen fail to create value since they do not expand the supply of physical goods.
c. A good or service has a given value regardless of who uses it or how it is used.
d. Voluntary exchange reduces value by channeling goods into the hands of people who value them least.
A
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When two variables in a graph are related to a third, changing the third causes
A) a movement along the curve. B) a shift of the curve. C) no change in the curve because the third variable isn't on the axes. D) either a shift or a movement in the curve, but more information is needed to determine which occurs. E) None of the above answers is correct.
_____ illustrates the speculative temper of the 1920s
a. The Ponzi scheme b. The New York pyramid scandal c. The Florida Land Boom d. Both a and b are correct. e. Both a and c are correct.
In a simplified banking system, the money multiplier falls as the required reserve ratio rises
a. True b. False Indicate whether the statement is true or false
The long-run industry supply curve is made up of the zero-profit equilibrium levels of output as the industry expands due to entry of new firms.
Answer the following statement true (T) or false (F)