Middlemen Are Individuals Who

Question: The successful introduction and adoption of a new product or process is known as

Answer: innovation.

Question: The process by which new products and methods of production are continuously replacing old ones is known as

Answer: creative destruction.

Question: A point on the production possibilities curve represents a combination of goods that is

Answer: efficient.

Question: Middlemen are individuals who

Answer: provide services that reduce the cost of transactions and help achieve additional gains from trade.

Question: A middleman is a person who

Answer: specializes in arranging trades and selling, guaranteeing, and servicing items traded.

Question: What, how, and for whom will goods be produced?

Answer: What are the three basic questions faced by every economy

Question: The notion that specialization in goods that one can produce at a low opportunity cost will make it possible for trading partners to produce a larger joint output is called

Answer: the law of comparative advantage.

Question: In economics, the term that refers to the time, effort, and other resources needed to search out, negotiate, and consummate an exchange is

Answer: transaction costs

Question: Land used to grow corn could also be used to grow soybeans. Which of the following is true when the farmer plants soybeans and the market price of corn rises?

Answer: The opportunity cost of producing soybeans increases

Question: Which of the following activities describes the opportunity cost of attending an economics class?

Answer: the value of the highest valued alternative that must be forgone because of attending the class