Which of the Following Is Unique to Export-Import Brokers, Differentiating

question 35

Multiple Choice

Which of the following is unique to export-import brokers, differentiating them from general brokers?

• A) They usually have a temporary relationship with the buyer and seller while a particular deal is negotiated.
• B) They specialize in bringing together buyers and sellers from different countries.
• C) They are especially useful when buyers and sellers do not come into the market very often.
• D) They earn a commission from whichever party hired them when the transaction is completed.
• E) The broker's product is information about what buyers need and what supplies are available.

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Definitions:

Deadweight Loss

A societal expense arising from market inefficiency, happening when there is a mismatch between supply and demand.

Equilibrium

A state in a market where the supply of a good matches its demand, resulting in stable prices.

Progressive Income Tax

A tax system in which the tax rate increases as the taxable amount increases, leading to higher earners paying a higher rate of tax on their income.

Equity

The concept of fairness or justice in the allocation of resources or treatment of individuals, or a term referring to ownership interest in a company through stocks.