An Intermediary

question 261

Multiple Choice

An intermediary

• A)is a wholesaler-not a retailer.
• B)usually increases the number of transactions required.
• C)tends to make the exchange process more difficult and costly.
• D)is someone who specializes in trade rather than production.
• E)None of these answers is correct.

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Definitions:

Machine-making Industry

A sector of the economy focused on the manufacturing and maintenance of machines and mechanical equipment.

Production Possibilities Frontier

A portrayal that shows the maximum achievable production levels for two goods, based on a selection of inputs involving resources and extra factors.

Production Possibilities Frontier

A diagram that represents the maximum production potential for two or more commodities, given certain inputs like resources and workforce.

Bowed Outward

Refers to the shape of the production possibility frontier that demonstrates increasing opportunity costs as resources are reallocated from producing one good to another.