Question 1

In an unregulated labor market, the wage adjusts to balance labor supply and labor demand.

Accepted Answer

A) True 
 B)False

Question 2

Figure 6-20
   ​
-Refer to Figure 6-20. Suppose a $3 per-unit tax is imposed on the sellers of this good. How much is the burden of this tax on the buyers in this market?

Accepted Answer

The burden

Question 3

When OPEC raised the price of crude oil in the 1970s, it caused the United States'

Accepted Answer

A) nonbinding price floor on gasoline to become binding. 
B) binding price floor on gasoline to become nonbinding. 
C) nonbinding price ceiling on gasoline to become binding. 
D) binding price ceiling on gasoline to become nonbinding. 
A) nonbinding price floor on gasoline to become binding. 
B) binding price floor on gasoline to become nonbinding. 
C) nonbinding price ceiling on gasoline to become binding. 
D) binding price ceiling on gasoline to become nonbinding.

Question 4

A price ceiling set below the equilibrium price is nonbinding.

Accepted Answer

A) True 
 B)False

Question 5

Table 6-2
 $$\begin{array} { | l | l | l | } 
\hline \text { Price (\$) } & \begin{array} { l } 
\text { Quantity } \
\text { Demanded }
\end{array} & \begin{array} { l } 
\text { Quantity } \
\text { Supplied }
\end{array} \
\hline 0 & 21 & 0 \
\hline 1 & 18 & 4 \
\hline 2 & 15 & 8 \
\hline 3 & 12 & 12 \
\hline 4 & 9 & 16 \
\hline 5 & 6 & 20 \
\hline 6 & 3 & 24 \
\hline 7 & 0 & 28 \
\hline
\end{array}$$
-Refer to Table 6-2. In this market, over what range of prices would a price floor set by the government be binding?

Accepted Answer

A price floor must be set abov

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

If the government removes a binding price floor from a market, then the price paid by buyers will

Accepted Answer

A) increase, and the quantity sold in the market will increase. 
B) increase, and the quantity sold in the market will decrease. 
C) decrease, and the quantity sold in the market will increase. 
D) decrease, and the quantity sold in the market will decrease. 
A) increase, and the quantity sold in the market will increase. 
B) increase, and the quantity sold in the market will decrease. 
C) decrease, and the quantity sold in the market will increase. 
D) decrease, and the quantity sold in the market will decrease.

Question 8

Figure 6-13
  
-Refer to Figure 6-13. How is the burden of the tax shared between buyers and sellers? Buyers bear

Accepted Answer

A) three-fourths of the burden, and sellers bear one-fourth of the burden. 
B) two-thirds of the burden, and sellers bear one-third of the burden. 
C) one-half of the burden, and sellers bear one-half of the burden. 
D) one-fourth of the burden, and sellers bear three-fourths of the burden. 
A) three-fourths of the burden, and sellers bear one-fourth of the burden. 
B) two-thirds of the burden, and sellers bear one-third of the burden. 
C) one-half of the burden, and sellers bear one-half of the burden. 
D) one-fourth of the burden, and sellers bear three-fourths of the burden.

Question 9

A binding minimum wage creates a surplus of labor.

Accepted Answer

A) True 
 B)False

Question 10

Figure 6-20
   ​
-Refer to Figure 6-20. Suppose a $3 per-unit tax is imposed on the sellers of this good. How much is the burden of this tax on the sellers in this market?

Accepted Answer

The burden

Question 11

A price ceiling set below the equilibrium price causes quantity demanded to exceed quantity supplied.

Accepted Answer

A) True 
 B)False

Question 12

Figure 6-17
   ​
-Refer to Figure 6-17. If the government places a $2 tax in the market, the seller bears $1 of the tax burden.

Accepted Answer

A) True 
 B)False

Question 13

Even though federal law mandates that workers and firms each pay half of the total FICA tax, the tax burden may not fall equally on workers and firms.

Accepted Answer

A) True 
 B)False

Question 14

A price ceiling set above the equilibrium price causes a surplus in the market.

Accepted Answer

A) True 
 B)False

Question 15

Figure 6-20
   ​
-Refer to Figure 6-20. Suppose a $3 per-unit tax is imposed on the sellers of this good. What is the effective price that sellers will receive for the good after the tax is imposed?

Accepted Answer

The effective price

Question 16

Scenario 6-1
Suppose that demand in the market for good X is given by the equation
 $$Q ^ { D } = 30 - P$$ and that supply in the market for good X is given by the equation
 $$Q ^ { S } = 2 P$$
-Refer to Scenario 6-1. If the government set a price floor at $7, would there be a shortage or surplus, and how large would be the shortage/surplus?

Accepted Answer

A price floor set at

Question 17

Figure 6-21
   ​
-Refer to Figure 6-21. If the government imposes a tax of $6 per unit in this market, what price will buyers pay per unit after the tax is imposed?

Accepted Answer

With a $6 tax per un

Question 18

​Whether the minimum wage is a binding price floor always depends upon whether the economy is in a recession.

Accepted Answer

A) True 
 B)False

Question 19

Studies by economists have found that a 10 percent increase in the minimum wage decreases teenage employment 10 percent.

Accepted Answer

A) True 
 B)False

Question 20

Buyers and sellers rarely share the burden of a tax equally.

Accepted Answer

A) True 
 B)False

Exam 6: Supply, Demand, and Government Policies

In an unregulated labor market, the wage adjusts to balance labor supply and labor demand.

Figure 6-20 ​ -Refer to Figure 6-20. Suppose a $3 per-unit tax is imposed on the sellers of this good. How much is the burden of this tax on the buyers in this market?

When OPEC raised the price of crude oil in the 1970s, it caused the United States'

A price ceiling set below the equilibrium price is nonbinding.

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

If the government removes a binding price floor from a market, then the price paid by buyers will

Figure 6-13 -Refer to Figure 6-13. How is the burden of the tax shared between buyers and sellers? Buyers bear

A binding minimum wage creates a surplus of labor.

Figure 6-20 ​ -Refer to Figure 6-20. Suppose a $3 per-unit tax is imposed on the sellers of this good. How much is the burden of this tax on the sellers in this market?

A price ceiling set below the equilibrium price causes quantity demanded to exceed quantity supplied.

Figure 6-17 ​ -Refer to Figure 6-17. If the government places a $2 tax in the market, the seller bears $1 of the tax burden.

Even though federal law mandates that workers and firms each pay half of the total FICA tax, the tax burden may not fall equally on workers and firms.

A price ceiling set above the equilibrium price causes a surplus in the market.

Figure 6-20 ​ -Refer to Figure 6-20. Suppose a $3 per-unit tax is imposed on the sellers of this good. What is the effective price that sellers will receive for the good after the tax is imposed?

Figure 6-21 ​ -Refer to Figure 6-21. If the government imposes a tax of $6 per unit in this market, what price will buyers pay per unit after the tax is imposed?

​Whether the minimum wage is a binding price floor always depends upon whether the economy is in a recession.

Studies by economists have found that a 10 percent increase in the minimum wage decreases teenage employment 10 percent.

Buyers and sellers rarely share the burden of a tax equally.

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 Nations 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

Filters

Figure 6-20 -Refer to Figure 6-20. Suppose a $3 per-unit tax is imposed on the sellers of this good. How much is the burden of this tax on the buyers in this market?

Figure 6-20 -Refer to Figure 6-20. Suppose a $3 per-unit tax is imposed on the sellers of this good. How much is the burden of this tax on the sellers in this market?

Figure 6-17 -Refer to Figure 6-17. If the government places a $2 tax in the market, the seller bears $1 of the tax burden.

Figure 6-20 -Refer to Figure 6-20. Suppose a $3 per-unit tax is imposed on the sellers of this good. What is the effective price that sellers will receive for the good after the tax is imposed?

Figure 6-21 -Refer to Figure 6-21. If the government imposes a tax of $6 per unit in this market, what price will buyers pay per unit after the tax is imposed?

Whether the minimum wage is a binding price floor always depends upon whether the economy is in a recession.