All of the following generate positive externalities EXCEPT
A) public health programs.
B) lower marginal tax rates.
C) requiring proof of inoculation before entering college.
D) requiring proof of inoculation before entering elementary school.
Ques. 2Rationing through the price system
A) leads to an inefficient use of available resources.
B) leads to high prices.
C) works only with government interference.
D) leads to an efficient use of available resources.
Ques. 3Which one of the following individuals is NOT counted as unemployed?
A) a recent college graduate currently without any employment and looking for her first full-time job
B) a 35-year-old woman fired from her prior work because of poor performance and looking for another job
C) a 50-year-old woman laid off from her former job because of a downturn in the company's sales and looking for another job
D) a 22-year-old aspiring actress currently without any show business employment, but working temporarily as a waitress while she auditions for acting jobs
Ques. 4A major criticism of static tax analysis is that it
A) uses only ad valorem taxes.
B) does not use ad valorem taxes.
C) ignores the incentive effects created by higher tax rates.
D) assumes that the tax base will not increase.
Ques. 5In situations in which prices cannot be used to signal relative scarcities of goods, which of the following can serve as a rationing mechanism?
A) queuing
B) political power
C) random assignment
D) all of the above
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