Beginning from a situation where there were no clear property rights to clean air and water:
a. subsidies could not improve efficiency in cases of external benefits
b. subsidies could not improve efficiency in cases of external costs.
c. taxes could not improve efficiency in cases of external costs.
d. neither external benefits nor external costs could improve efficiency in either the case of external benefits or the case of external costs.
b
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The price index that measures the prices of goods and services purchased by firms is called the:
A. producer price index. B. purchasing power index. C. retail sales index. D. consumer price index.
Eli can decide between two jobs. One job is harvesting grapes at a local vineyard. He would earn $8 every hour he works there. He could also earn $7 an hour working as a bagger at the local grocery. Assuming Eli can only choose between these 2 jobs and that the benefits of both jobs are the same. If Eli decides to work at the grocery store as a bagger the opportunity cost every hour he decides to work at the grocery is:
A. less than $8. B. exactly $7. C. exactly $8. D. more than $8.