Which of the following statements is NOT true about exchanges in the market system?
A) In voluntary exchange both parties are better off because of the exchange.
B) Exchanges occur only in situations of barter where the market price is irrelevant.
C) Prices indicate what is relatively abundant and what is relatively scarce.
D) Transaction costs in exchanges include the cost of enforcing a contract as well as the costs of information.
B
You might also like to view...
Many economists believe the Fed was in large part responsible for bringing about the Great Moderation, gaining more credibility as it transitioned away from ________ and more towards ________
A) fiscal policy; monetary policy B) discretionary policy; a rules policy C) monetary rules; discretionary rules D) targeting inflation; targeting unemployment
A monopolist faces the inverse demand curve P = 60 - Q. It has variable costs of Q2 so that its marginal costs are 2Q, and it has fixed costs of 30. The monopoly's maximum profit is
A) 220. B) 370. C) 420. D) 510.
Esmerelda worked part-time for her mother's business without pay. Tabitha was absent from work because she had strep throat. Who is counted as "employed" by the Bureau of Labor Statistics?
a. Esmerelda but not Tabitha b. Tabitha but not Esmerelda c. both Esmerelda and Tabitha d. neither Esmerelda nor Tabitha
Injections include
A. Consumer saving. B. Taxes. C. Business saving. D. Exports.