The most important function of middlemen is to
A) act as marketing agents for producers.
B) expand the number of jobs in the economy.
C) produce valuable information and lower transaction costs.
D) protect consumers from exploitation.
E) stand between buyers and sellers to control markups.
C
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Suppose business decision makers become more optimistic about the future and, as a result, increase their investment spending by $20 billion. If the economy's marginal propensity to consume is 0.75, the equilibrium level of aggregate real GDP will increase by:
a. $15 billion. b. $20 billion. c. $50 billion. d. $80 billion.
A nation has a comparative advantage over a trading partner in the production of good A if it
A. produces good A at a lower opportunity cost per unit than its trading partner. B. can produce good A with the same resources as its trading partner but in less time. C. can match its trading partner's output of good A and have resources left over. D. has an absolute advantage over its trading partner.
Wages paid to teachers, police personnel, and postal workers are not transfer payments because they are payments for services and not simply "transfers" of money.
Answer the following statement true (T) or false (F)
The formula q/L represents
A. the average product of labor. B. total product. C. the marginal product of labor. D. the capital-to-labor ratio.