Question 1

Table 6-1  
-Refer to Table 6-1. Suppose the government imposes a price floor of $30 on this market. What will be the size of the surplus in this market?

Accepted Answer

A) 0 units 
B) 200 units 
C) 1800 units 
D) 2000 units 
A) 0 units 
B) 200 units 
C) 1800 units 
D) 2000 units

Question 2

Figure 6-8  
-Refer to Figure 6-8. When a certain price control is imposed on this market, the resulting quantity of the good that is actually bought and sold is such that buyers are willing and able to pay a maximum of P1 dollars per unit for that quantity and sellers are willing and able to accept a minimum of P2 dollars per unit for that quantity. If P1 - P2 = $3, then the price control is

Accepted Answer

A) a price ceiling of $2.00. 
B) a price ceiling of $5.00. 
C) a price floor of $5.00. 
D) either a price ceiling of $2.00 or a price floor of $5.00. 
A) a price ceiling of $2.00. 
B) a price ceiling of $5.00. 
C) a price floor of $5.00. 
D) either a price ceiling of $2.00 or a price floor of $5.00.

Question 3

How does elasticity affect the burden of a tax? Justify your answer using supply and demand diagrams.

Accepted Answer

@#IMG-DLM& The tax burden fall

Question 4

Figure 6-13
This figure shows the market demand and market supply curves for good X.  
-Refer to Figure 6-13. If the government imposes a price floor of $7 on this market, then there will be

Accepted Answer

A) no surplus. 
B) a surplus of 10 units. 
C) a surplus of 15 units. 
D) a surplus of 20 units. 
A) no surplus. 
B) a surplus of 10 units. 
C) a surplus of 15 units. 
D) a surplus of 20 units.

Question 5

Figure 6-22  
-Refer to Figure 6-22. Sellers pay how much of the tax per unit?

Accepted Answer

A) $0.50. 
B) $1.50. 
C) $3.00. 
D) $5.00. 
A) $0.50. 
B) $1.50. 
C) $3.00. 
D) $5.00.

Question 6

Figure 6-28  
-Refer to Figure 6-28. Suppose a tax of $4 per unit is imposed on this market. Which of the following is correct?

Accepted Answer

A) Buyers and sellers will share the burden of the tax equally. 
B) Buyers will bear more of the burden of the tax than sellers. 
C) Sellers will bear more of the burden of the tax than buyers. 
D) Any of the above is possible in this market. 
A) Buyers and sellers will share the burden of the tax equally. 
B) Buyers will bear more of the burden of the tax than sellers. 
C) Sellers will bear more of the burden of the tax than buyers. 
D) Any of the above is possible in this market.

Question 7

Figure 6-7  
-Refer to Figure 6-7. For a price floor to be binding in this market, it would have to be set at

Accepted Answer

A) any price below $7. 
B) any price below $3. 
C) any price below $9. 
D) any price above $7. 
A) any price below $7. 
B) any price below $3. 
C) any price below $9. 
D) any price above $7.

Question 8

Minimum-wage laws dictate the

Accepted Answer

A) average price employers must pay for labor. 
B) highest price employers may pay for labor. 
C) lowest price employers may pay for labor. 
D) the highest and lowest prices employers may pay for labor. 
A) average price employers must pay for labor. 
B) highest price employers may pay for labor. 
C) lowest price employers may pay for labor. 
D) the highest and lowest prices employers may pay for labor.

Exam 6: Supply, Demand, and Government Policies

Table 6-1 -Refer to Table 6-1. Suppose the government imposes a price floor of $30 on this market. What will be the size of the surplus in this market?

How does elasticity affect the burden of a tax? Justify your answer using supply and demand diagrams.

Figure 6-13 This figure shows the market demand and market supply curves for good X. -Refer to Figure 6-13. If the government imposes a price floor of $7 on this market, then there will be

Figure 6-22 -Refer to Figure 6-22. Sellers pay how much of the tax per unit?

Figure 6-28 -Refer to Figure 6-28. Suppose a tax of $4 per unit is imposed on this market. Which of the following is correct?

Figure 6-7 -Refer to Figure 6-7. For a price floor to be binding in this market, it would have to be set at

Minimum-wage laws dictate the

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

Applications: 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

Measuring a Nation S Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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