Estimates of the size of the underground economy in the U.S. range from:
a. 4 to 20 percent

Per-unit transaction costs:

a. may cause the demand and supply curves to shift either inward or outward depending on the value obtained from transaction agents. b. refer only to the commission paid to a third-party for each transaction made. c. are absorbed by the party seeking the transaction. d. have the same effect on behavior as do lump-sum transaction costs; the difference in terminology is purely definitional.

Contractionary fiscal policy, other things being equal, will tend to: a. increase interest rates. b. increase investment

c. increase net exports. d. do both (b) and (c).