Individuals who specialize in activities that lower transaction costs are
A. producers.
B. middlemen.
C. consumers.
D. bureaucrats.
Answer: B
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The prediction that workers get additional training only when the rewards from the training are expected to exceed the costs of the training (including the opportunity costs) is based on the:
A. cost-benefit principle. B. principle of comparative advantage. C. principle of diminishing returns to capital. D. scarcity principle.
The liquidity preference theory ________
A) distinguishes between nominal and real quantities B) shows that demand for real balances depends on real income C) shows that demand for real balances depends on the nominal interest rate D) all of the above E) none of the above
Assume the reserve requirement is 10 percent. First National Bank has vault cash and deposits with the Fed of $30 million, loans and securities of $60 million, and checking deposits of $300 million. First National is in a position to make
a. no additional loans. b. $5 million of additional loans. c. $10 million of additional loans. d. $15 million of additional loans.
The demand equation for a single price monopolist is P = 50 - Q. The marginal revenue equation for this monopolist is
A. 50 - Q. B. 100 - Q. C. 25 - Q. D. 50 - 2Q.