Question 1

In the short run,rent control causes the quantity supplied

Accepted Answer

A)  and quantity demanded to fall. 
B)  to fall and quantity demanded to rise. 
C)  to rise and quantity demanded to fall. 
D)  and quantity demanded to rise. 
A)  and quantity demanded to fall. 
B)  to fall and quantity demanded to rise. 
C)  to rise and quantity demanded to fall. 
D)  and quantity demanded to rise.

Question 2

In response to a shortage caused by the imposition of a binding price ceiling on a market,

Accepted Answer

A)  price will no longer be the mechanism that rations scarce resources. 
B)  long lines of buyers may develop. 
C)  sellers could ration the good or service according to their own personal biases. 
D)  All of the above are correct. 
A)  price will no longer be the mechanism that rations scarce resources. 
B)  long lines of buyers may develop. 
C)  sellers could ration the good or service according to their own personal biases. 
D)  All of the above are correct.

Question 3

Advocates of the minimum wage

Accepted Answer

A)  deny that the minimum wage produces any adverse effects. 
B)  emphasize the benefits to teenagers of increases in the minimum wage. 
C)  emphasize the low annual incomes of those who work for the minimum wage. 
D)  All of the above are correct. 
A)  deny that the minimum wage produces any adverse effects. 
B)  emphasize the benefits to teenagers of increases in the minimum wage. 
C)  emphasize the low annual incomes of those who work for the minimum wage. 
D)  All of the above are correct.

Question 4

A price ceiling set below the equilibrium price is binding.

Accepted Answer

A) True 
 B)False

Question 5

A binding minimum wage creates a shortage of labor.

Accepted Answer

A) True 
 B)False

Question 6

The effects of rent control in the long run include lower rents and lower-quality housing.

Accepted Answer

A) True 
 B)False

Question 7

Using the graph shown,answer the following questions.
a.What was the equilibrium price in this market before the tax?
b.What is the amount of the tax?
c.How much of the tax will the buyers pay?
d.How much of the tax will the sellers pay?
e.How much will the buyer pay for the product after the tax is imposed?
f.How much will the seller receive after the tax is imposed?
g.As a result of the tax,what has happened to the level of market activity?

Accepted Answer

a.$6
b.$4
c.$1
d.$3
e.$7
f.$3

Question 8

A tax on sellers and an increase in input prices affect the supply curve in the same way.

Accepted Answer

A) True 
 B)False

Question 9

Suppose the government has imposed a price ceiling on laptop computers.Which of the following events could transform the price ceiling from one that is not binding into one that is binding?

Accepted Answer

A)  Improvements in production technology reduce the costs of producing laptop computers. 
B)  The number of firms selling laptop computers decreases. 
C)  Consumers' income decreases, and laptop computers are a normal good. 
D)  The number of consumers buying laptop computers decreases. 
A)  Improvements in production technology reduce the costs of producing laptop computers. 
B)  The number of firms selling laptop computers decreases. 
C)  Consumers' income decreases, and laptop computers are a normal good. 
D)  The number of consumers buying laptop computers decreases.

Question 10

Other than OPEC,the shortage of gasoline in the U.S.in the 1970s could also be blamed on

Accepted Answer

A)  a sharp increase in the demand for gasoline that was brought on by the Vietnam War. 
B)  the government's policy of maintaining a price ceiling on gasoline. 
C)  an indifference among U.S. consumers toward conservation. 
D)  the lack of substitutes for crude oil. 
A)  a sharp increase in the demand for gasoline that was brought on by the Vietnam War. 
B)  the government's policy of maintaining a price ceiling on gasoline. 
C)  an indifference among U.S. consumers toward conservation. 
D)  the lack of substitutes for crude oil.

Question 11

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)  18 
A)  3 
B)  9 
C)  15 
D)  18

Question 12

When a tax is placed on the buyers of lemonade,the

Accepted Answer

A)  sellers bear the entire burden of the tax. 
B)  buyers bear the entire burden of the tax. 
C)  burden of the tax will be always be equally divided between the buyers and the sellers. 
D)  burden of the tax will be shared by the buyers and the sellers, but the division of the burden is not always equal. 
A)  sellers bear the entire burden of the tax. 
B)  buyers bear the entire burden of the tax. 
C)  burden of the tax will be always be equally divided between the buyers and the sellers. 
D)  burden of the tax will be shared by the buyers and the sellers, but the division of the burden is not always equal.

Question 13

Minimum wage laws

Accepted Answer

A)  may encourage some teenagers to drop out and take jobs. 
B)  create labor shortages. 
C)  have the greatest impact in the market for skilled labor. 
D)  All of the above are correct. 
A)  may encourage some teenagers to drop out and take jobs. 
B)  create labor shortages. 
C)  have the greatest impact in the market for skilled labor. 
D)  All of the above are correct.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Figure 6-3

-Refer to Figure 6-3.A nonbinding price floor is shown in

Accepted Answer

A)  both panel (a) and panel (b). 
B)  panel (a) only. 
C)  panel (b) only. 
D)  neither panel (a) nor panel (b). 
A)  both panel (a) and panel (b). 
B)  panel (a) only. 
C)  panel (b) only. 
D)  neither panel (a) nor panel (b).

Question 16

A price floor is

Accepted Answer

A)  a legal minimum on the price at which a good can be sold. 
B)  often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price floor. 
C)  a source of inefficiency in a market. 
D)  All of the above are correct. 
A)  a legal minimum on the price at which a good can be sold. 
B)  often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price floor. 
C)  a source of inefficiency in a market. 
D)  All of the above are correct.

Question 17

A tax burden falls more heavily on the side of the market that is less elastic.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Figure 6-15
  
-Refer to Figure 6-15.Suppose a tax of $2 per unit is imposed on this market.What will be the new equilibrium quantity in this market?

Accepted Answer

A)  less than 50 units 
B)  50 units 
C)  between 50 units and 100 units 
D)  greater than 100 units 
A)  less than 50 units 
B)  50 units 
C)  between 50 units and 100 units 
D)  greater than 100 units

Question 20

A shortage results when a

Accepted Answer

A)  nonbinding price ceiling is imposed on a market. 
B)  nonbinding price ceiling is removed from a market. 
C)  binding price ceiling is imposed on a market. 
D)  binding price ceiling is removed from a market. 
A)  nonbinding price ceiling is imposed on a market. 
B)  nonbinding price ceiling is removed from a market. 
C)  binding price ceiling is imposed on a market. 
D)  binding price ceiling is removed from a market.

In the short run,rent control causes the quantity supplied

In response to a shortage caused by the imposition of a binding price ceiling on a market,

Advocates of the minimum wage

A price ceiling set below the equilibrium price is binding.

A binding minimum wage creates a shortage of labor.

The effects of rent control in the long run include lower rents and lower-quality housing.

A tax on sellers and an increase in input prices affect the supply curve in the same way.

Suppose the government has imposed a price ceiling on laptop computers.Which of the following events could transform the price ceiling from one that is not binding into one that is binding?

Other than OPEC,the shortage of gasoline in the U.S.in the 1970s could also be blamed on

When a tax is placed on the buyers of lemonade,the

Minimum wage laws

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

Figure 6-3 -Refer to Figure 6-3.A nonbinding price floor is shown in

A price floor is

A tax burden falls more heavily on the side of the market that is less elastic.

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

Figure 6-15 -Refer to Figure 6-15.Suppose a tax of $2 per unit is imposed on this market.What will be the new equilibrium quantity in this market?

A shortage results when a

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 Market For the Factors of Production.

Earnings and Discrimination.

Income Inequality and Poverty.

The Theory of Consumer Choice.

Frontiers in Microeconomics.

Filters

Exam 6: Supply, Demand, And Government Policies.

In the short run,rent control causes the quantity supplied

In response to a shortage caused by the imposition of a binding price ceiling on a market,

Advocates of the minimum wage

A price ceiling set below the equilibrium price is binding.

A binding minimum wage creates a shortage of labor.

The effects of rent control in the long run include lower rents and lower-quality housing.

A tax on sellers and an increase in input prices affect the supply curve in the same way.

Suppose the government has imposed a price ceiling on laptop computers.Which of the following events could transform the price ceiling from one that is not binding into one that is binding?

Other than OPEC,the shortage of gasoline in the U.S.in the 1970s could also be blamed on

When a tax is placed on the buyers of lemonade,the

Minimum wage laws

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

Figure 6-3 -Refer to Figure 6-3.A nonbinding price floor is shown in

A price floor is

A tax burden falls more heavily on the side of the market that is less elastic.

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

Figure 6-15 -Refer to Figure 6-15.Suppose a tax of $2 per unit is imposed on this market.What will be the new equilibrium quantity in this market?

A shortage results when a

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 Market For the Factors of Production.

Earnings and Discrimination.

Income Inequality and Poverty.

The Theory of Consumer Choice.

Frontiers in Microeconomics.

Filters