According to your text, who among the following have a comparative advantage in providing information that reduce transaction costs?
A) The consumer
B) The bureaucrat
C) The middleman
D) The career politician
C
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Suppose scientific research generates external benefits. Without government intervention, the market for scientific research would
A) produce the efficient amount. B) produce more than the efficient amount. C) produce some research, but less than the efficient amount. D) produce zero research. E) either produce more than or less than the efficient amount depending on whether the external benefit is on the production or consumption of the research.
The interest rate that equates the price of a bond with the present value of its payments:
A. should always be greater than the coupon rate. B. should be the one that makes the value equal to the par value of the bond. C. will vary inversely with the value of the bond. D. will vary directly with the value of the bond.
For a given level of inflation, if a resolution of international disputes leads to a cutback in government military spending, then the ________ shifts ________.
A. short-run aggregate supply line; downward B. short-run aggregate supply line; upward C. aggregate demand curve; left D. aggregate demand curve; right
Which of the following is the best example of a quota?
A. a tax placed on all small cars sold in the domestic market B. a limit imposed on the number of men's suits that can be imported from a foreign country C. a subsidy from the U.S. government to domestic manufacturers of men's suits so they can compete more effectively with foreign producers of men's suits D. a $100-per-car fee imposed on all small imported cars