Exam 6: Government Actions in Markets

-The above figure shows the market for neckties. Based on the graph, how much tax per necktie has been imposed by the government?

-You are in the business of producing and selling hamburgers, french fries, pizza, and ice cream. The mayor plans to impose a tax on one of these products. Based on the elasticities in the above table, on which of these goods would your customers least like to be taxed?

A minimum wage set above the equilibrium wage I. increases the supply of labor. II) increases the quantity of labor supplied. III) decreases the demand for labor.

A $10 per-unit tax on cell phones raises the equilibrium price paid by consumers by $5. Before the tax, 5,000 cell phones were sold per year. The revenue from the tax is

A price ceiling

-The figure above shows the demand for and supply of rental housing in Smallton. If a rent ceiling is set at $400, what is the rent?

Discrimination based on age, race, gender, or family status very likely increases as a result of rent ceilings.

-The above table gives the demand schedule and the supply schedule for housing in Anytown, U.S.A. If a rent ceiling of $300 is imposed in the housing market, then

-In the above figure, the deadweight loss due to the tax is

-The figure above shows the market for cotton in Georgestan. The government regulates the market with a production quota set at 8 million pounds per year. The introduction of the quota has

-The figure illustrates the market for posters. The tax on a poster is ________ and the government's tax revenue from the sale of posters is ________ a month.

The government sets a price floor for corn which is above the equilibrium price of corn. As a result