Question 1

Binding price ceilings benefit consumers because they allow consumers to buy all the goods they demand at a lower price.

Accepted Answer

A) True 
 B)False

Question 2

If a tax is levied on the seller of a product,what will happen to the demand curve and the supply curve

Accepted Answer

A) Demand will not change and supply shifts to the left 
B) Demand will not change and supply shifts to the right. 
C) Demand shifts to the left and supply will not change. 
D) Demand shifts to the right and supply will not change. 
A) Demand will not change and supply shifts to the left 
B) Demand will not change and supply shifts to the right. 
C) Demand shifts to the left and supply will not change. 
D) Demand shifts to the right and supply will not change.

Question 3

Market demand is given as QD = 75 - 2P.Market supply is given as QS = 3P.Which legally imposed price would constitute a binding price floor

Accepted Answer

A) $9 
B) $13 
C) $15 
D) $18 
A) $9 
B) $13 
C) $15 
D) $18

Question 4

Figure 6-12
  
-Refer to Figure 6-12.What is the amount of the tax per unit imposed

Accepted Answer

A) P₂ minus P₀ 
B) P₂ minus P₁ 
C) P₁ minus P₀ 
D) Q₁ minus Q₀ 
A) P₂ minus P₀ 
B) P₂ minus P₁ 
C) P₁ minus P₀ 
D) Q₁ minus Q₀

Question 5

With a binding price floor,what will the market price be

Accepted Answer

A) lower than the price floor 
B) higher than the price floor 
C) equal to the difference between price floor and price ceiling 
D) equal to the difference between price floor and the market equilibrium. 
A) lower than the price floor 
B) higher than the price floor 
C) equal to the difference between price floor and price ceiling 
D) equal to the difference between price floor and the market equilibrium.

Question 6

What are the outcomes of price controls

Accepted Answer

A) Price controls produce an equitable outcome. 
B) Price controls produce an efficient outcome. 
C) Price controls are imposed by business firms to promote an equifigure outcome. 
D) Price controls lead to shortages or surpluses. 
A) Price controls produce an equitable outcome. 
B) Price controls produce an efficient outcome. 
C) Price controls are imposed by business firms to promote an equifigure outcome. 
D) Price controls lead to shortages or surpluses.

Question 7

Figure 6-13
  
-Refer to Figure 6-13.What is the price that will be paid after the tax is imposed

Accepted Answer

A) $8 
B) $10 
C) $16 
D) $24 
A) $8 
B) $10 
C) $16 
D) $24

Question 8

What results when the minimum wage is above the equilibrium wage

Accepted Answer

A) The quantity demanded of labour will be greater than the quantity supplied. 
B) The quantity demanded of labour will equal to the quantity supplied. 
C) The quantity demanded of labour will be less than the quantity supplied. 
D) Anyone who wants a job at the minimum wage can find one. 
A) The quantity demanded of labour will be greater than the quantity supplied. 
B) The quantity demanded of labour will equal to the quantity supplied. 
C) The quantity demanded of labour will be less than the quantity supplied. 
D) Anyone who wants a job at the minimum wage can find one.

Binding price ceilings benefit consumers because they allow consumers to buy all the goods they demand at a lower price.

If a tax is levied on the seller of a product,what will happen to the demand curve and the supply curve

Market demand is given as Q_D= 75 - 2P.Market supply is given as Q_S= 3P.Which legally imposed price would constitute a binding price floor

Figure 6-12 -Refer to Figure 6-12.What is the amount of the tax per unit imposed

With a binding price floor,what will the market price be

What are the outcomes of price controls

Figure 6-13 -Refer to Figure 6-13.What is the price that will be paid after the tax is imposed

What results when the minimum wage is above the equilibrium wage

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 of Microeconomics

Filters

Exam 6: Supply, demand, and Government Policies

Binding price ceilings benefit consumers because they allow consumers to buy all the goods they demand at a lower price.

If a tax is levied on the seller of a product,what will happen to the demand curve and the supply curve

Market demand is given as QD = 75 - 2P.Market supply is given as QS = 3P.Which legally imposed price would constitute a binding price floor

Figure 6-12 -Refer to Figure 6-12.What is the amount of the tax per unit imposed

With a binding price floor,what will the market price be

What are the outcomes of price controls

Figure 6-13 -Refer to Figure 6-13.What is the price that will be paid after the tax is imposed

What results when the minimum wage is above the equilibrium wage

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 of Microeconomics

Filters

Market demand is given as Q_D= 75 - 2P.Market supply is given as Q_S= 3P.Which legally imposed price would constitute a binding price floor