Which of the following most accurately states the function of middlemen?
a. Middlemen add to the expense of buyers and sellers without providing any benefit.
b. Our economy would work just as well without middlemen since they do not expand the availability of physical goods.
c. Middlemen reduce the number of transactions since they increase the buyer's price and reduce the seller's net revenue.
d. Middlemen create value by arranging trades and providing information to buyers and sellers.
D
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The slope of the per person production function is
A) the marginal product of labor. B) the marginal product of capital. C) lower for a poor country than for a rich country. D) higher for a rich country than for a poor country.
Which of the following would not be considered an indirect tax?
a. A value-added tax b. A tax on wheat export c. A tax on imported automobiles d. A tax on the income of a computer manufacturer e. A sales tax on cigarettes