A law requiring sellers to pay the government a tax per pack on cigarettes has the effect of:
a. shifting the supply curve to the right.
b. shifting the demand curve to the right.
c. shifting the supply curve to the left.
d. shifting the demand curve to the left.
c
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In calculating GDP, "transfer payments" are
A) included because they are re-valuations of existing wealth. B) excluded because no goods or services were produced in exchange for them. C) included because they are payments for labor services. D) excluded because used goods already counted the year they were produced.
A price support system that raises price above the normal equilibrium will cause a
A. shift left in demand. B. decrease in the quantity supplied. C. shift right in supply. D. decrease in the quantity demanded.
Which of the following is not an investment in human capital?
A. An individual decides to enroll in a vocational training program. B. The government expands its programs to improve health care. C. The government increases the level of unemployment benefits. D. A firm engages in on-the-job training.
Consider two countries, Estonia and Ukraine. Estonia devotes a larger portion of its production to capital. All other things equal, which of the following statements is most likely true?
A. Ukraine is producing inside its production possibility frontier, whereas Estonia is producing at a point on its production possibility frontier. B. Estonia will move up its production possibility curve faster than Ukraine. C. Estonia's production possibility frontier will shift up and out farther and faster than Ukraine's. D. Estonia is a poorer country than Ukraine.