Question 1

Which of the following is not a result of rent control?

Accepted Answer

A) fewer new apartments offered for rent 
B) less maintenance provided by landlords 
C) bribery 
D) higher quality housing 
A) fewer new apartments offered for rent 
B) less maintenance provided by landlords 
C) bribery 
D) higher quality housing

Question 2

If the supply curve is more price elastic than the demand curve in a particular market, will the buyers or the sellers bear a larger burden of a per-unit tax imposed on the market?

Accepted Answer

The buyers will bear

Question 3

Because the supply and demand of housing are inelastic in the short run, the initial shortage caused by rent control is large.

Accepted Answer

A) True 
 B)False

Question 4

Congress intended that

Accepted Answer

A) the entire FICA tax be paid by workers. 
B) the entire FICA tax be paid by firms. 
C) one-quarter of the FICA tax be paid by workers, and three-quarters be paid by firms. 
D) half the FICA tax be paid by workers, and half be paid by firms. 
A) the entire FICA tax be paid by workers. 
B) the entire FICA tax be paid by firms. 
C) one-quarter of the FICA tax be paid by workers, and three-quarters be paid by firms. 
D) half the FICA tax be paid by workers, and half be paid by firms.

Question 5

A legal minimum on the price at which a good can be sold is called a

Accepted Answer

A) price subsidy. 
B) price floor. 
C) tax. 
D) price ceiling. 
A) price subsidy. 
B) price floor. 
C) tax. 
D) price ceiling.

Question 6

Figure 6-25  
-Refer to Figure 6-25. How much tax revenue does this tax generate for the government?

Accepted Answer

A) $150 
B) $180 
C) $250 
D) $300 
A) $150 
B) $180 
C) $250 
D) $300

Question 7

The minimum wage has its greatest impact on the market for teenage labor.

Accepted Answer

A) True 
 B)False

Question 8

Figure 6-31  
-Refer to Figure 6-31. If the government set a price floor at $15, would there be a shortage or surplus, and how large would be the shortage/surplus?

Accepted Answer

A price floor set at

Question 9

A tax imposed on the buyers of a good will raise the

Accepted Answer

A) price paid by buyers and lower the equilibrium quantity. 
B) price paid by buyers and raise the equilibrium quantity. 
C) effective price received by sellers and lower the equilibrium quantity. 
D) effective price received by sellers and raise the equilibrium quantity. 
A) price paid by buyers and lower the equilibrium quantity. 
B) price paid by buyers and raise the equilibrium quantity. 
C) effective price received by sellers and lower the equilibrium quantity. 
D) effective price received by sellers and raise the equilibrium quantity.

Question 10

Which of the following causes a shortage of a good?

Accepted Answer

A) a binding price floor 
B) a binding price ceiling 
C) a tax on the good 
D) None of the above is correct. 
A) a binding price floor 
B) a binding price ceiling 
C) a tax on the good 
D) None of the above is correct.

Question 11

Figure 6-31  
-Refer to Figure 6-31. If the government set a price ceiling at $15, would there be a shortage or surplus, and how large would be the shortage/surplus?

Accepted Answer

A price ceiling set at $15 wou

Question 12

Table 6-5  
-Refer to Table 6-5. Which of the following price floors would be binding in this market?

Accepted Answer

A) $3 
B) $6 
C) $9 
D) None of the above price floors would be binding. 
A) $3 
B) $6 
C) $9 
D) None of the above price floors would be binding.

Question 13

The goal of rent control is to help the poor by making housing more affordable.

Accepted Answer

A) True 
 B)False

Question 14

Figure 6-18
The vertical distance between points A and B represents the tax in the market.  
-Refer to Figure 6-18. The per-unit burden of the tax on sellers is

Accepted Answer

A) $6. 
B) $8. 
C) $10. 
D) $14. 
A) $6. 
B) $8. 
C) $10. 
D) $14.

Question 15

Scenario 6-1
Suppose that demand in the market for good X is given by the equation   and that supply in the market for good X is given by the equation  
-Refer to Scenario 6-1. What are the equilibrium price and quantity in the market for good X?

Accepted Answer

The equilibrium pric

Question 16

Minimum-wage laws dictate the lowest wage that firms may pay workers.

Accepted Answer

A) True 
 B)False

Question 17

​A shortage is eliminated when

Accepted Answer

A) ​a binding price ceiling is removed. 
B) ​a binding price ceiling is enacted. 
C) ​a nonbinding price ceiling is repealed. 
D) ​a nonbinding price ceiling is imposed. 
A) ​a binding price ceiling is removed. 
B) ​a binding price ceiling is enacted. 
C) ​a nonbinding price ceiling is repealed. 
D) ​a nonbinding price ceiling is imposed.

Question 18

A tax on sellers shifts the supply curve to the left.

Accepted Answer

A) True 
 B)False

Question 19

Rent control policies tend to cause

Accepted Answer

A) relatively smaller shortages in the short run than in the long run because supply and demand tends to be more elastic in the short run than in the long run. 
B) relatively larger shortages in the short run than in the long run because supply and demand tends to be more elastic in the short run than in the long run. 
C) relatively larger shortages in the short run than in the long run because supply and demand tends to be more inelastic in the short run than in the long run. 
D) relatively smaller shortages in the short run than in the long run because supply and demand tends to be more inelastic in the short run than in the long run. 
A) relatively smaller shortages in the short run than in the long run because supply and demand tends to be more elastic in the short run than in the long run. 
B) relatively larger shortages in the short run than in the long run because supply and demand tends to be more elastic in the short run than in the long run. 
C) relatively larger shortages in the short run than in the long run because supply and demand tends to be more inelastic in the short run than in the long run. 
D) relatively smaller shortages in the short run than in the long run because supply and demand tends to be more inelastic in the short run than in the long run.

Question 20

Figure 6-11  
-Refer to Figure 6-11. Which of the following statements is not correct?

Accepted Answer

A) A government-imposed price of $8 would be a binding price floor if market demand is Demand A and a binding price ceiling if market demand is Demand B. 
B) A government-imposed price of $10 would be a binding price ceiling if market demand is either Demand A or Demand B. 
C) A government-imposed price of $4 would be a binding price ceiling if market demand is either Demand A or Demand B. 
D) A government-imposed price of $10 would be a binding price floor if market demand is Demand A and a non-binding price ceiling if market demand is Demand B. 
A) A government-imposed price of $8 would be a binding price floor if market demand is Demand A and a binding price ceiling if market demand is Demand B. 
B) A government-imposed price of $10 would be a binding price ceiling if market demand is either Demand A or Demand B. 
C) A government-imposed price of $4 would be a binding price ceiling if market demand is either Demand A or Demand B. 
D) A government-imposed price of $10 would be a binding price floor if market demand is Demand A and a non-binding price ceiling if market demand is Demand B.

Exam 6: Supply, Demand, and Government Policies

Which of the following is not a result of rent control?

If the supply curve is more price elastic than the demand curve in a particular market, will the buyers or the sellers bear a larger burden of a per-unit tax imposed on the market?

Because the supply and demand of housing are inelastic in the short run, the initial shortage caused by rent control is large.

Congress intended that

A legal minimum on the price at which a good can be sold is called a

Figure 6-25 -Refer to Figure 6-25. How much tax revenue does this tax generate for the government?

The minimum wage has its greatest impact on the market for teenage labor.

Figure 6-31 -Refer to Figure 6-31. If the government set a price floor at $15, would there be a shortage or surplus, and how large would be the shortage/surplus?

A tax imposed on the buyers of a good will raise the

Which of the following causes a shortage of a good?

Figure 6-31 -Refer to Figure 6-31. If the government set a price ceiling at $15, would there be a shortage or surplus, and how large would be the shortage/surplus?

Table 6-5 -Refer to Table 6-5. Which of the following price floors would be binding in this market?

The goal of rent control is to help the poor by making housing more affordable.

Figure 6-18 The vertical distance between points A and B represents the tax in the market. -Refer to Figure 6-18. The per-unit burden of the tax on sellers is

Scenario 6-1 Suppose that demand in the market for good X is given by the equation and that supply in the market for good X is given by the equation -Refer to Scenario 6-1. What are the equilibrium price and quantity in the market for good X?

Minimum-wage laws dictate the lowest wage that firms may pay workers.

​A shortage is eliminated when

A tax on sellers shifts the supply curve to the left.

Rent control policies tend to cause

Figure 6-11 -Refer to Figure 6-11. Which of the following statements is not correct?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

Filters

A shortage is eliminated when