A program of complete indexation would
A) eliminate most of the costs of inflation.
B) increase the sensitivity of the economy to supply shocks.
C) make the role of expectations negligible.
D) all of these
D
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When government provides a good with an external benefit, to attain efficiency the price paid by consumers is set equal to the
A) marginal private benefit at the efficient level of output. B) marginal private cost at the efficient level of output. C) amount paid by taxpayers. D) market-determined price. E) marginal external benefit at the efficient level of output.
All of the following would be examples of a spot markets except one. Which would not be a spot market?
a. The market for milk b. The market for beauty salon services c. The market for higher education d. The market for basketball cards e. The market for used cars