Compared to a situation where transaction costs are zero, the existence of transaction costs
a. will reduce the volume of trade.
b. will reduce the gains from trade.
c. may lead some buyers and sellers to employ middlemen.
d. All of the above are correct.
D
Economics
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The public sector of the U.S. economy includes:
a. the federal, state, and local government. b. multinational corporations and the federal government. c. the Federal Reserve bank of the U.S. d. the judiciary and the federal government. e. households.
Economics
Stanley receives the following marginal utilities from the first four car washes that he buys each year, respectively: 20, 15, 10, and 5 . If each car wash sells for $10, then the marginal utility per dollar spent on the third car wash is
a. 10 b. 4.5 c. 1 d. 45 e. 5
Economics