TOLFA Segment 11, Question 7

Would average prices be predictable in a free-market society? Why, or why not? Of course not; one could not even predict what form of money it would choose from year to year. There would be chaos.
Strong precedent says gold would be the predominant form of money, and the rate of increase in the supply of gold (eg how much more can be mined each year) is very predictable. Since the society's productivity growth would also be measurable, a good estimate of future prices would always be available.
To a good degree, yes; but a free society would be innovating so fast that everything would be hard to predict.

Don't hurry away; even when you've got the right answer, try clicking on the others to see why they are wrong! Then when you have correctly answered this make notes in your student notebook, go to Question 8.

Segment 11 Page