Which one of the following is NOT a determinant of demand?
A) prices of related goods
B) cost of inputs in production
C) income
D) future price expectations
Ques. 2To correct for positive externalities the government
A) should allow the price system to do the correction.
B) can impose a tax.
C) can give a subsidy.
D) should create a public good.
Ques. 3High gasoline prices give people all of the following incentives EXCEPT
A) to drive less.
B) to car pool.
C) to buy a hybrid car.
D) to take vacations that require driving more miles.
Ques. 4The corporate income tax in the United States
A) excludes dividends paid out.
B) only taxes retained earnings.
C) results in individuals' being doubly taxed on corporate earnings.
D) does not apply to profits earned on exports.
Ques. 5If the duration of unemployment in a country increases from 16 weeks to 18 weeks, then
A) the unemployment rate will decrease.
B) the unemployment rate will increase.
C) the size of the labor force will increase.
D) the size of the labor force will decrease.
Ques. 6Which of the following will cause a rightward shift of the demand curve?
A) a decrease in the cost of production
B) a decrease in the price of the good
C) an increase in the expected future price of the good
D) all of the above
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