Which of the following statements about stock market brokers and dealers is TRUE?
A) Brokers earn commissions from trading stocks but dealers try to profit from trading stocks.
B) Brokers try to profit from trading stocks but dealers earn commissions from trading stocks.
C) Both brokers and dealers earn commissions from trading stocks.
D) Both brokers and dealers try to profit from trading stocks.
Answer: A
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All of the following are characteristics of allocation by rationing EXCEPT
a. lack of fairness. b. high administrative cost. c. efficiency. d. diminished incentive for workers.
When productive activities are organized according to the principle of the division of labor
A) scarcity is eliminated. B) we do not devote enough resources for capital investment. C) total output increases due to the advantages of specialization. D) an inefficient outcome results.