Which of the Following Is True Regarding Value, Transaction Costs

question 219

Multiple Choice

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.

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Definitions:

Experimental Method

A research method involving the manipulation of variables to determine cause and effect relationships.

Random Assignment

A method used in experiments to randomly allocate participants to different groups in order to reduce bias and ensure the groups are comparable.

Ethical Guidelines

A set of principles designed to help professionals conduct their work with integrity and honesty.

Control Groups

Groups in experimental research that do not receive the treatment being tested, allowing for comparison with the experimental group.