Question 1

Table 6-1
 
-Refer to Table 6-1.Suppose the government imposes a price floor of $1 on this market.What will be the size of the surplus in this market?

Accepted Answer

A)   0 units
B)   2 units
C)   8 units
D)   10 unitsE) A) and D)
F) C) and D)

Question 2

Figure 6-27 
-Refer to Figure 6-27.If the government places a $2 tax in the market,the seller receives $6.

Accepted Answer

A) True 
 B)False

Question 3

The rationing mechanisms that develop under binding price floors are usually efficient.

Accepted Answer

A) True 
 B)False

Question 4

If the government removes a tax on a good,then the quantity of the good sold will

Accepted Answer

A)   increase.
B)   decrease.
C)   not change.
D)   All of the above are possible.E) A) and B)
F) A) and C)

Question 5

Renters of rent-controlled apartments will likely benefit from both lower rents and higher quality of apartments.

Accepted Answer

A) True 
 B)False

Question 6

Figure 6-13 
-Refer to Figure 6-13.In this market,a minimum wage of $7.25 creates a labor

Accepted Answer

A)   shortage of 2,250 workers.
B)   shortage of 4,500 workers.
C)   surplus of 2,250 workers.
D)   surplus of 4,500 workers.E) All of the above
F) A) and C)

Question 7

A binding minimum wage creates unemployment.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is the most likely explanation for the imposition of a price floor on the market for corn?

Accepted Answer

A)   Policymakers have studied the effects of the price floor carefully,and they recognize that the price floor is advantageous for society as a whole.
B)   Buyers and sellers of corn have agreed that the price floor is good for both of them and have therefore pressured policy makers into imposing the price floor.
C)   Buyers of corn,recognizing that the price floor is good for them,have pressured policymakers into imposing the price floor.
D)   Sellers of corn,recognizing that the price floor is good for them,have pressured policymakers into imposing the price floor.E) A) and D)
F) A) and C)

Question 9

In a competitive market free of government regulation,

Accepted Answer

A)   price adjusts until quantity demanded is greater than quantity supplied.
B)   price adjusts until quantity demanded is less than quantity supplied.
C)   price adjusts until quantity demanded equals quantity supplied.
D)   supply adjusts to meet demand at every price.E) B) and C)
F) C) and D)

Question 10

Figure 6-18 
-Refer to Figure 6-18.As the figure is drawn,who sends the tax payment to the government?

Accepted Answer

A)   The buyers send the tax payment.
B)   The sellers send the tax payment.
C)   A portion of the tax payment is sent by the buyers,and the remaining portion is sent by the sellers.
D)   The question of who sends the tax payment cannot be determined from the graph.E) All of the above
F) B) and C)

Question 11

Figure 6-5 
-Refer to Figure 6-5.Suppose a $3 per-unit tax is imposed on the sellers of this good.What price will buyers pay for the good after the tax is imposed?

Accepted Answer

Buyers wil...

Question 12

Table 6-4
The following table contains the demand schedule and supply schedule for a market for a particular good.Suppose sellers of the good successfully lobby Congress to impose a price floor $3 above the equilibrium price in this market.
 
-Refer to Table 6-4.How many units of the good are sold after the imposition of the price floor?

Accepted Answer

A)   3
B)   9
C)   15
D)   18E) A) and C)
F) None of the above

Question 13

Figure 6-23 
-Refer to Figure 6-23.How much tax revenue does this tax produce for the government?

Accepted Answer

A)   $480
B)   $600
C)   $800
D)   $1120E) None of the above
F) A) and B)

Question 14

Figure 6-25

-Refer to Figure 6-25.In which market will the majority of the tax burden fall on sellers?

Accepted Answer

A)   market (a) 
B)   market (b) 
C)   market (c) 
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 15

Most of the burden of a luxury tax falls on the middle class workers who produce luxury goods rather than on the rich who buy them.

Accepted Answer

A) True 
 B)False

Question 16

If a tax is imposed on the buyers of a product,then the tax burden will fall entirely on the buyers.

Accepted Answer

A) True 
 B)False

Question 17

A $2.00 tax levied on the sellers of birdhouses will shift the supply curve

Accepted Answer

A)   upward by exactly $2.00.
B)   upward by less than $2.00.
C)   downward by exactly $2.00.
D)   downward by less than $2.00.E) A) and D)
F) C) and D)

Question 18

Whether a tax is levied on sellers or buyers,buyers and sellers usually share the burden of taxes.

Accepted Answer

A) True 
 B)False

Question 19

Figure 6-12 1 before 1973;they paid a price of P2 after OPEC increased the price of crude oil in 1973,and there was a shortage of gasoline at that price. B)  Buyers of gasoline paid a price of P1 before 1973;they paid a price of P3 after OPEC increased the price of crude oil in 1973,and there was a shortage of gasoline at that price. C)  Buyers of gasoline paid a price of P2 before 1973;they paid a price of P3 after OPEC increased the price of crude oil in 1973,with no shortage of gasoline at that price. D)  The price ceiling was binding before 1973;the price ceiling was no longer binding after OPEC increased the price of crude oil in 1973." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 6-12.Which of the following statements best relates the figure to the events that occurred in the United States in the 1970s?

Accepted Answer

A)   Buyers of gasoline paid a price of P1 before 1973;they paid a price of P2 after OPEC increased the price of crude oil in 1973,and there was a shortage of gasoline at that price.
B)   Buyers of gasoline paid a price of P1 before 1973;they paid a price of P3 after OPEC increased the price of crude oil in 1973,and there was a shortage of gasoline at that price.
C)   Buyers of gasoline paid a price of P2 before 1973;they paid a price of P3 after OPEC increased the price of crude oil in 1973,with no shortage of gasoline at that price.
D)   The price ceiling was binding before 1973;the price ceiling was no longer binding after OPEC increased the price of crude oil in 1973.E) A) and B)
F) All of the above

Question 20

Figure 6-5 
-Refer to Figure 6-5.If the horizontal line on the graph represents a price ceiling,then the price ceiling is

Accepted Answer

A)   binding and creates a surplus of 40 units of the good.
B)   binding and creates a surplus of 90 units of the good.
C)   not binding but creates a surplus of 40 units of the good.
D)   not binding,and there will be no surplus or shortage of the good.E) A) and C)
F) All of the above

Exam 6: Supply,demand,and Government Policies

Figure 6-13 -Refer to Figure 6-13.In this market,a minimum wage of $7.25 creates a labor

Correct Answer
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Figure 6-18 -Refer to Figure 6-18.As the figure is drawn,who sends the tax payment to the government?

Correct Answer
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In a competitive market free of government regulation,

Correct Answer
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If the government removes a tax on a good,then the quantity of the good sold will

Correct Answer
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Renters of rent-controlled apartments will likely benefit from both lower rents and higher quality of apartments.

Correct Answer
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Figure 6-23 -Refer to Figure 6-23.How much tax revenue does this tax produce for the government?

Correct Answer
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If a tax is imposed on the buyers of a product,then the tax burden will fall entirely on the buyers.

Correct Answer
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Correct Answer
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A binding minimum wage creates unemployment.

Correct Answer
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A $2.00 tax levied on the sellers of birdhouses will shift the supply curve

Correct Answer
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Figure 6-25 -Refer to Figure 6-25.In which market will the majority of the tax burden fall on sellers?

Correct Answer
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The rationing mechanisms that develop under binding price floors are usually efficient.

Correct Answer
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Figure 6-5 -Refer to Figure 6-5.If the horizontal line on the graph represents a price ceiling,then the price ceiling is

Correct Answer
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Figure 6-12 -Refer to Figure 6-12.Which of the following statements best relates the figure to the events that occurred in the United States in the 1970s?

Correct Answer
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Figure 6-5 -Refer to Figure 6-5.Suppose a $3 per-unit tax is imposed on the sellers of this good.What price will buyers pay for the good after the tax is imposed?

Correct Answer
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Buyers wil...
View Answer

Whether a tax is levied on sellers or buyers,buyers and sellers usually share the burden of taxes.

Correct Answer
verified

Figure 6-27 -Refer to Figure 6-27.If the government places a $2 tax in the market,the seller receives $6.

Correct Answer
verified

Most of the burden of a luxury tax falls on the middle class workers who produce luxury goods rather than on the rich who buy them.

Correct Answer
verified

Table 6-1 -Refer to Table 6-1.Suppose the government imposes a price floor of $1 on this market.What will be the size of the surplus in this market?

Correct Answer
verified

Which of the following is the most likely explanation for the imposition of a price floor on the market for corn?

Correct Answer
verified

Exam 6: Supply,demand,and Government Policies

Figure 6-13 -Refer to Figure 6-13.In this market,a minimum wage of $7.25 creates a labor

Correct AnswerverifiedShow Answer

Figure 6-18 -Refer to Figure 6-18.As the figure is drawn,who sends the tax payment to the government?

Correct AnswerverifiedShow Answer

In a competitive market free of government regulation,

Correct AnswerverifiedShow Answer

If the government removes a tax on a good,then the quantity of the good sold will

Correct AnswerverifiedShow Answer

Renters of rent-controlled apartments will likely benefit from both lower rents and higher quality of apartments.

Correct AnswerverifiedShow Answer

Figure 6-23 -Refer to Figure 6-23.How much tax revenue does this tax produce for the government?

Correct AnswerverifiedShow Answer

If a tax is imposed on the buyers of a product,then the tax burden will fall entirely on the buyers.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A binding minimum wage creates unemployment.

Correct AnswerverifiedShow Answer

A $2.00 tax levied on the sellers of birdhouses will shift the supply curve

Correct AnswerverifiedShow Answer

Figure 6-25 -Refer to Figure 6-25.In which market will the majority of the tax burden fall on sellers?

Correct AnswerverifiedShow Answer

The rationing mechanisms that develop under binding price floors are usually efficient.

Correct AnswerverifiedShow Answer

Figure 6-5 -Refer to Figure 6-5.If the horizontal line on the graph represents a price ceiling,then the price ceiling is

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Figure 6-12 -Refer to Figure 6-12.Which of the following statements best relates the figure to the events that occurred in the United States in the 1970s?

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Figure 6-5 -Refer to Figure 6-5.Suppose a $3 per-unit tax is imposed on the sellers of this good.What price will buyers pay for the good after the tax is imposed?

Correct AnswerverifiedBuyers wil...View AnswerShow Answer

Whether a tax is levied on sellers or buyers,buyers and sellers usually share the burden of taxes.

Correct AnswerverifiedShow Answer

Figure 6-27 -Refer to Figure 6-27.If the government places a $2 tax in the market,the seller receives $6.

Correct AnswerverifiedShow Answer

Most of the burden of a luxury tax falls on the middle class workers who produce luxury goods rather than on the rich who buy them.

Correct AnswerverifiedShow Answer

Table 6-1 -Refer to Table 6-1.Suppose the government imposes a price floor of $1 on this market.What will be the size of the surplus in this market?

Correct AnswerverifiedShow Answer

Which of the following is the most likely explanation for the imposition of a price floor on the market for corn?

Correct AnswerverifiedShow Answer

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Buyers wil...
View Answer

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