If the social costs of refining oil are greater than the private costs of oil refining, then
A. users of products that use refined oil are paying too much for the products.
B. the amount of oil refining needs to increase in order to bring social costs and private costs in line with each other.
C. the external costs of oil refining are greater than the social costs of oil refining.
D. there is too much oil refining.
Answer: D
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When nations attempt to move quickly from central planning to a market system, they face the obstacle of high transaction costs in large part because
A) market systems are unnatural and require careful design. B) people who have lived under socialism lack the basic skills a market system requires. C) people who have long lived under socialism are not sufficiently individualistic. D) the experience of socialism makes people distrustful of one another. E) they lack many of the institutions that develop over time in a market system.
The practice of "monetizing the debt" is traditionally feared because it is thought to cause
A) unemployment. B) inflation. C) a falling price level. D) a liquidity trap.