Which of the following is true regarding value, transaction costs, and exchange?
a. Middlemen can be viewed as agents who create value by reducing transaction costs and, thereby, facilitating gains from exchange.
b. Middlemen fail to create value since they do not expand the supply of physical goods.
c. A good or service has a given value regardless of who uses it or how it is used.
d. Voluntary exchange reduces value by channeling goods into the hands of people who value them least.
A
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The efficient markets hypothesis says that
a. only individual investors can make money in the stock market. b. it should be easy to find stocks whose price differs from their fundamental value. c. stock prices follow a random walk. d. All of the above are correct.
It is generally easier to prevent deforestation than fishery collapse because:
A. it is easier to establish and enforce property rights on national lands than in international waters. B. there is greater incentive to have sustainable forests than sustainable fisheries. C. the demand for wood products has dropped significantly while the demand for fish has grown significantly.