Economic Thinking Suggests That a Nation in Which Middlemen Are

question 120

Multiple Choice

Economic thinking suggests that a nation in which middlemen are considered to be unproductive seekers of profit, and where their activities are heavily restricted by law, will

• A) gain by channeling people's efforts away from unproductive middleman activity toward physical output.
• B) lose the potential gains from trade that would result from lower transaction costs emanating from middleman activities.
• C) find that it is richer because the added transaction costs normally imposed by middlemen will be reduced.
• D) gain because the value of total output will rise.

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Definitions:

$500,000 Loan

A sum of money borrowed that amounts to five hundred thousand dollars, which is subject to repayment conditions set by the lender.

Breach Of Partner's Duty

The failure of a business partner to fulfill their obligations or act in the best interest of the partnership, violating their fiduciary duties.

Auditing Services

Professional services provided by a certified auditor to examine and evaluate the accuracy of financial statements and records of an organization.

Partnership Agreement

A contract among partners in a partnership which outlines the terms and conditions of the relationship, duties, and profit distribution.