The difference between the market price of a new car used by a firm and the market price of the same car one year later is known as

Government expenditures on goods and services include

i. the New York City Library's purchase of new books. ii. Washington D.C.'s purchase of gas for its city buses. iii. California's payment of wages to prison guards. A) i and ii B) i and iii C) i, ii and iii D) i only E) ii and iii

Government intervention will not be necessary when voluntary contracting internalizes an externality. Which of the following is NOT a necessary condition for this to occur?

A) well-defined private property rights B) low transaction costs C) large numbers of individuals involved in the transactions D) low contract enforcement costs