Which of the following can prevent markets from reaching the efficient level of production? I. a monopoly II. taxes III. the product is a public good

Logrolling _____

a. impedes the work of special interest groups b. makes it easier for politicians to pass special interest legislation c. decreases the total quantity of special interest benefits d. does not depend on the rational ignorance of voters

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.