Middlemen would serve no productive function if
A) information is scarce and transactions costs are zero.
B) information is free and transactions costs are significant.
C) information is free and transactions costs are zero.
D) people only purchased what they need, rather than what they want.
C
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In the context of stock markets, “the tail wags the dog” means that a failure of the stock market can drag down the entire economy.
Answer the following statement true (T) or false (F)
If the consumer price index (CPI) in Year 1 was 200 and the CPI in Year 2 was 215, the rate of inflation was:
a. 215 percent. b. 15 percent. c. 5 percent. d. 7.5 percent. e. 8 percent.
Which of the following is not an external determinant of organizational architecture?
A. Administrative control systems B. Government regulations C. Technology D. Markets
In the absence of a subsidy, production efficiency by a natural monopolist will
A. Be achieved if price is set equal to marginal cost. B. Be achieved if marginal revenue is set equal to marginal cost. C. Never be achieved. D. Be achieved if price is set equal to average total cost.