Which of the following most accurately states the function of middlemen?
a. Middlemen reduce transaction costs.
b. Middlemen add to the expense of buyers and sellers without providing any benefit.
c. Our economy would work just as well without middlemen since they do not expand the availability of physical goods.
d. Middlemen reduce the number of transactions since they increase the buyer's price and reduce the seller's net receipts.
A
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Worker mobility and transition aid to workers are two ways to offset some of the impacts of:
A. increasing wage inequality. B. increases in the labor supply. C. the slowdown in productivity growth. D. the slowdown in real-wage growth.
Which of the following illustrates a burden of the national debt?
A) Future generations will have to pay lower taxes to finance the national debt. B) A large debt decreases the amount of capital, thereby decreasing future incomes. C) The current generation receives a higher level of government services. D) The current generation pays a higher level of taxes.
Which of the following is a possible rationing device?
A) dollar price B) first-come-first-served C) brute force D) a and b E) a, b, and c
Suppose that a small business takes in monthly revenue of $100,000. Labor, rental, energy, and other purchased input costs are $70,000. The owner/entrepreneur could earn $5,000 per month in another job, and the owner/entrepreneur could get a return of $5,000 each month if she sold her business and invested the net proceeds in a financial asset, such as a treasury bond. Which of the following correctly describes her monthly economic profit?
A. $90,000. B. $80,000. C. $25,000. D. $20,000.