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:

Periodic Interest Rate

The interest rate charged or paid over a specific period of time, often monthly, quarterly, or annually.

Conditional Sale Contracts

Agreements where the sale of goods or property is conditional upon certain terms, typically the buyer making payments over a period, with the title remaining with the seller until conditions are met.

Purchase Price

The amount of money paid to acquire a good, service, or asset.

Combined Equivalent

The unified outcome or measure that represents the aggregate result or impact of several elements.