Another term for equilibrium price is

Insurance companies typically charge women lower prices than men for automobile insurance. Is this an example of price discrimination?

A) Yes, because insurance companies can prevent arbitrage; that is, women cannot transfer their insurance coverage to men. B) No, because there are too many insurance companies for any one company to have market power. A firm must possess market power in order to practice price discrimination. C) No, because, on average, women have better driving records than men and the costs of insuring men are greater than the costs of insuring women. D) Yes, because the costs of selling insurance to men and women are the same.

The Ricardian equivalence theorem implies that

A) government debt policy must be handled correctly for the economy to prosper. B) the amounts of government spending are neutral. C) an increase in government spending has no effect on the economy, as long as there is an equal change in taxes. D) the timing of taxes collected by the government is neutral.