Using the above table, the labor force is
A) 380,000.
B) 911,000.
C) 930,000.
D) 569,000.
Ques. 2Assume that the government one day decides to tax greens fees at all state golf courses. To the government's dismay, not only was the amount of tax collected small, but there was a 90 percent decline in golfing.
What type of tax analysis did the government apparently rely upon when it imposed this tax? A) static tax analysis
B) dynamic tax analysis
C) transaction cost analysis
D) ad hoc tax analysis
Ques. 3Explain why an external benefit leads to an under-allocation of resources to the production of a good.
What will be an ideal response?
Ques. 4Which one of the following industries is best classified as an oligopoly?
A) textbook publishers
B) retailing
C) wheat farms in the United States
D) fast food restaurants
Ques. 5Given the production possibilities schedule in the above table, a combination of 60 televisions and 40 personal computers
A) is attainable but involves an inefficient use of society's resources.
B) would be attainable only if a new technology of producing televisions or computers were introduced.
C) is not attainable because it is not listed in the schedule.
D) is not attainable because society does not have enough resources to produce this combination.
Ques. 6Prices play a role in a market
A) because they distribute scarce goods to those consumers who value them most highly.
B) because when prices are in equilibrium, product shortages or surpluses can occur.
C) because they help eliminate poverty.
D) because they eliminate scarcity.
Ques. 7Which of the following statements is TRUE about the public debt and future generations?
A) Future generations will always be worse off because they will have to pay off the public debt.
B) Increased consumption today will lead to increases in the capital stock in the future.
C) Future generations may be better off if the rate of return on the borrowed funds is higher than the interest rate paid to foreign residents.
D) The public debt cannot be held by foreign residents therefore we really owe the debt to ourselves.
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