Which of the following would reduce the transaction costs of exchange?
A. legislation that prohibits the activities of middlemen
B. government licensing of sellers
C. increasing tariffs and quotas
D. improvements in technology that make it easier to identify potential sellers
Answer: D. improvements in technology that make it easier to identify potential sellers
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If total government tax collections equal $100 billion, transfer payments equal $50 billion, and government interest payments equal $5 billion, then net taxes equal:
A. $105 billion. B. $45 billion. C. $55 billion. D. $155 billion.
Angelo's Pizza is famous for its secret tomato sauce. The managers of Angelo's Pizza are more likely to produce all of their inputs rather than buy them due to ________.
A) communication costs B) transportation costs C) economies of scale D) trade secrets
Middlemen, such as grocers, stockbrokers, and realtors
a. specialize in reducing transactions costs. b. provide nothing of value to either the buyer or the seller. c. have no effect on economic output in society. d. do not exist in capitalist economies.
A result of welfare economics is that the equilibrium price of a product is considered to be the best price because it
a. maximizes both the total revenue for firms and the quantity supplied of the product. b. maximizes the combined welfare of buyers and sellers. c. minimizes costs and maximizes output. d. minimizes the level of welfare payments.