Question 6
Voluntary transactions
Always increase wealth for everyone
Are inefficient
Always produce gains for both parties
Produce gains for at least one party
Question 7
Wealth creating transactions are more likely to occur
with black markets
with private property rights
with strong contract enforcement
All of the above
Question 8
Which of these actions creates value?
Buying a struggling firm and selling off its assets for more than the purchase price.
A student increasing his decision-making ability with an MBA
A baseball slugger drawing paying fans into the ballpark.
All of the above
Question 9
A price ceiling
Will create a surplus.
Causes an increase in consumer and producer surplus.
Is a government-set maximum price.
Is an implicit tax on producers and an implicit subsidy to consumers.
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