Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter 2, Problem 5CQ
To determine
Major function of a middleman and its relevance.
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Chapter 2 Solutions
Economics: Private and Public Choice (MindTap Course List)
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- A __________ system is a method of making economic decisions that allows individuals and firms to decide who gets what and how using a voluntary exchange.arrow_forwardWhich of the below statements DOES NOT capture Economics? Group of answer choices Economics tells us that there is no theoretical limit to how well we can live or how widely our wealth can spread. The economic prosperity of an economy requires that every person in that economy have a Ph.D. degree. Wheelan argues that the free market system does not make poverty inevitable. Economic development is not a zero-sum game. Even the most prosperous economy will contiue to require certain manual tasks that do not require advanced college degrees. These tasks cannot be replaced with automation. Expecting Ph.D.s or people with professional education to do such tasks will have a high opportunity cost.arrow_forwardAre the economic, power, and prestige dimensionsrelated?arrow_forward
- Indicate True (T) or False (F) for the following questions, and explain your answer in 50 words "If a certain trade is good for one person, it can’t be good for the other one."arrow_forwardIn capitalist economy, does it project a fair price for the consumer?arrow_forwardWhat is the difference of absolute advantage and comparitive advantage?arrow_forward
- When countries specialize in producing certain goods and then freely exchange those goods for other goods with different countries, what is the advantage? Group of answer choices Each country can consume at a point outside their production possibilities frontier. All people in each country will be better off than they would be if they did not trade. Each country can produce at a point outside their production possibilities frontier. Each country can produce and consume at a point outside their production possibilities frontier.arrow_forwardAvon pays its sales personnel a commission for every sale they make. Which economic principle is Avon trying to apply? Group of answer choices A)People face trade-offs B)Trade can make everyone better off C)Markets can make everyone better off D)People respond to incentivesarrow_forwardWhich of the market structures is the easiest to penetrate and why? Please explain.arrow_forward
- Is capitalism associated more with a market or command economy? Why would capitalism be able to do "millions of things better" than a centrally planned economy? What things do you think a capitalist society would be more successful at than a centrally planed society?arrow_forwardWhat type of economists believe that markets naturally self-correct, and will reward good strategies and punish bad ones?arrow_forward“Because all points on a contract curve are efficient, they are all equally desirable from a social point of view.” Do you agree with this statement? Discuss.arrow_forward
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