Question 1

Where does a binding price floor in a market set price,and with what effect

Accepted Answer

A) above equilibrium price, causing a shortage 
B) above equilibrium price, causing a surplus 
C) below equilibrium price, causing a surplus 
D) below equilibrium price, causing a shortage 
A) above equilibrium price, causing a shortage 
B) above equilibrium price, causing a surplus 
C) below equilibrium price, causing a surplus 
D) below equilibrium price, causing a shortage

Question 2

Figure 6-8
  
-Refer to Figure 6-8.What is the share of the tax burden that buyers would pay

Accepted Answer

A) $1.00 per unit 
B) $1.50 per unit 
C) $2.00 per unit 
D) $3.00 per unit 
A) $1.00 per unit 
B) $1.50 per unit 
C) $2.00 per unit 
D) $3.00 per unit

Question 3

Using a supply-demand diagram,show a labour market with a binding minimum wage.Now,use the diagram to show those who are helped by the minimum wage,and those who are hurt by the minimum wage.

Accepted Answer

@#IMG-DLM& Those helped by the minimum wage are th

Question 4

Market demand is given as QD = 45 - P.Market supply is given as QS = P + 15.Which legally imposed price would constitute a binding price floor

Accepted Answer

A) $5 
B) $10 
C) $15 
D) $20 
A) $5 
B) $10 
C) $15 
D) $20

Question 5

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

Accepted Answer

A) $10 
B) $15 
C) $20 
D) $25 
A) $10 
B) $15 
C) $20 
D) $25

Question 6

Which of the following is a result of government-imposed rent controls

Accepted Answer

A) more new apartments offered for rent 
B) more maintenance provided by landlords 
C) less bribery 
D) lower quality housing 
A) more new apartments offered for rent 
B) more maintenance provided by landlords 
C) less bribery 
D) lower quality housing

Question 7

If a tax is imposed on the buyer of a product,how will the demand curve shift

Accepted Answer

A) downward by the amount of the tax 
B) upward by the amount of the tax 
C) downward by less than the amount of the tax 
D) upward by more than the amount of the tax 
A) downward by the amount of the tax 
B) upward by the amount of the tax 
C) downward by less than the amount of the tax 
D) upward by more than the amount of the tax

Question 8

What do most labour economists believe about the supply of labour

Accepted Answer

A) It is less elastic than demand and therefore firms bear most of the burden of the payroll tax. 
B) It is less elastic than demand and therefore workers bear most of the burden of the payroll tax. 
C) It is more elastic than demand and therefore workers bear most of the burden of the payroll tax. 
D) It is more elastic than demand and therefore firms bear most of the burden of the payroll tax. 
A) It is less elastic than demand and therefore firms bear most of the burden of the payroll tax. 
B) It is less elastic than demand and therefore workers bear most of the burden of the payroll tax. 
C) It is more elastic than demand and therefore workers bear most of the burden of the payroll tax. 
D) It is more elastic than demand and therefore firms bear most of the burden of the payroll tax.

Question 9

Figure 6-2
  
-Refer to Figure 6-2.If the government imposes a binding price ceiling of $8.00 in this market,what is the result

Accepted Answer

A) a surplus of 20 units 
B) a surplus of 40 units 
C) a shortage of 20 units 
D) a shortage of 40 units 
A) a surplus of 20 units 
B) a surplus of 40 units 
C) a shortage of 20 units 
D) a shortage of 40 units

Question 10

When are price controls usually used

Accepted Answer

A) Price controls are usually used when the market is inefficient. 
B) Price controls are usually used when policymakers believe that the market price of a good or service is unfair to buyers or sellers. 
C) Price controls are usually used when there is monopoly power in the market. 
D) Price controls are usually used when there are profits in the market. 
A) Price controls are usually used when the market is inefficient. 
B) Price controls are usually used when policymakers believe that the market price of a good or service is unfair to buyers or sellers. 
C) Price controls are usually used when there is monopoly power in the market. 
D) Price controls are usually used when there are profits in the market.

Question 11

Figure 6-5

-Refer to Figure 6-5.Which panel best represent a binding rent control in the long run

Accepted Answer

A) panel (a) 
B) panel (b) 
C) panel (c) 
D) Panel (d) 
A) panel (a) 
B) panel (b) 
C) panel (c) 
D) Panel (d)

Question 12

Which is the most likely result of imposing a minimum wage above a market's equilibrium wage

Accepted Answer

A) The quantity supplied of labour will be greater than the quantity demanded of labour, and unemployment will occur. 
B) The quantity demanded of labour will be greater than the quantity supplied of labour, and unemployment will occur. 
C) The quantity supplied of labour will be greater than the quantity demanded of labour, and a shortage of workers will occur. 
D) The quantity demanded of labour will be greater than the quantity supplied of labour, and a shortage of workers will occur. 
A) The quantity supplied of labour will be greater than the quantity demanded of labour, and unemployment will occur. 
B) The quantity demanded of labour will be greater than the quantity supplied of labour, and unemployment will occur. 
C) The quantity supplied of labour will be greater than the quantity demanded of labour, and a shortage of workers will occur. 
D) The quantity demanded of labour will be greater than the quantity supplied of labour, and a shortage of workers will occur.

Question 13

What do the equilibrium wages of teenagers tend to be,and why

Accepted Answer

A) low, because teenagers are among the least skilled and least experienced workers 
B) high, because teenagers are among the strongest and most energetic workers 
C) low, because most teenagers live at home and do not require high wages 
D) high, because teenagers tend to join unions 
A) low, because teenagers are among the least skilled and least experienced workers 
B) high, because teenagers are among the strongest and most energetic workers 
C) low, because most teenagers live at home and do not require high wages 
D) high, because teenagers tend to join unions

Question 14

Suppose that a tax is placed on theatre tickets.If the seller ends up paying the majority of the tax,what do we know

Accepted Answer

A) The demand curve is more inelastic than the supply curve. 
B) The supply curve is more inelastic than the demand curve. 
C) The government has placed the tax on the seller. 
D) The government has placed the tax on the buyer. 
A) The demand curve is more inelastic than the supply curve. 
B) The supply curve is more inelastic than the demand curve. 
C) The government has placed the tax on the seller. 
D) The government has placed the tax on the buyer.

Question 15

Market demand is given as QD = 30 - P.Market supply is given as QS = 2P.Which legally imposed price would constitute a binding price ceiling

Accepted Answer

A) $5 
B) $10 
C) $15 
D) $20 
A) $5 
B) $10 
C) $15 
D) $20

Question 16

Market demand is given as QD = 120 - 2P.Market supply is given as QS = P + 30.Which legally imposed price would constitute a binding price ceiling

Accepted Answer

A) $10 
B) $30 
C) $40 
D) $60 
A) $10 
B) $30 
C) $40 
D) $60

Question 17

Figure 6-9
  
-Refer to Figure 6-9.What is the amount of the tax per unit imposed in this market

Accepted Answer

A) $4.00 
B) $6.00 
C) $8.00 
D) $10.00 
A) $4.00 
B) $6.00 
C) $8.00 
D) $10.00

Question 18

Market demand is given as QD = 150 - 3P.Market supply is given as QS = 2P + 50.Which legally imposed price would constitute a binding price ceiling

Accepted Answer

A) $15 
B) $20 
C) $25 
D) $30 
A) $15 
B) $20 
C) $25 
D) $30

Question 19

Figure 6-4
  
-Refer to Figure 6-4.Without the price ceiling in this market for gasoline,what will happen to the price when the supply curve shifts from S₁ to S₂

Accepted Answer

A) It will increase to P₃, but a shortage will still exist. 
B) It will increase to P₃ and the market will clear. 
C) It will remain at P₁ and a shortage will still exist. 
D) It will eventually move to P₂ without government assistance. 
A) It will increase to P₃, but a shortage will still exist. 
B) It will increase to P₃ and the market will clear. 
C) It will remain at P₁ and a shortage will still exist. 
D) It will eventually move to P₂ without government assistance.

Question 20

What results when a tax is placed on the buyers of soy milk

Accepted Answer

A) The size of the soy milk market is reduced. 
B) The price of soy milk decreases. 
C) The supply of soy milk decreases. 
D) The price of soy milk increases, and the equilibrium quantity of milk is unchanged. 
A) The size of the soy milk market is reduced. 
B) The price of soy milk decreases. 
C) The supply of soy milk decreases. 
D) The price of soy milk increases, and the equilibrium quantity of milk is unchanged.

Exam 6: Supply, demand, and Government Policies

Where does a binding price floor in a market set price,and with what effect

Figure 6-8 -Refer to Figure 6-8.What is the share of the tax burden that buyers would pay

Using a supply-demand diagram,show a labour market with a binding minimum wage.Now,use the diagram to show those who are helped by the minimum wage,and those who are hurt by the minimum wage.

Market demand is given as QD = 45 - P.Market supply is given as QS = P + 15.Which legally imposed price would constitute a binding price floor

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

Which of the following is a result of government-imposed rent controls

If a tax is imposed on the buyer of a product,how will the demand curve shift

What do most labour economists believe about the supply of labour

Figure 6-2 -Refer to Figure 6-2.If the government imposes a binding price ceiling of $8.00 in this market,what is the result

When are price controls usually used

Figure 6-5 -Refer to Figure 6-5.Which panel best represent a binding rent control in the long run

Which is the most likely result of imposing a minimum wage above a market's equilibrium wage

What do the equilibrium wages of teenagers tend to be,and why

Suppose that a tax is placed on theatre tickets.If the seller ends up paying the majority of the tax,what do we know

Market demand is given as QD = 30 - P.Market supply is given as QS = 2P.Which legally imposed price would constitute a binding price ceiling

Market demand is given as QD = 120 - 2P.Market supply is given as QS = P + 30.Which legally imposed price would constitute a binding price ceiling

Figure 6-9 -Refer to Figure 6-9.What is the amount of the tax per unit imposed in this market

Market demand is given as QD = 150 - 3P.Market supply is given as QS = 2P + 50.Which legally imposed price would constitute a binding price ceiling

Figure 6-4 -Refer to Figure 6-4.Without the price ceiling in this market for gasoline,what will happen to the price when the supply curve shifts from S₁ to S₂

What results when a tax is placed on the buyers of soy milk

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= 45 - P.Market supply is given as Q_S= P + 15.Which legally imposed price would constitute a binding price floor

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 ceiling

Market demand is given as Q_D= 30 - P.Market supply is given as Q_S= 2P.Which legally imposed price would constitute a binding price ceiling

Market demand is given as Q_D= 120 - 2P.Market supply is given as Q_S= P + 30.Which legally imposed price would constitute a binding price ceiling

Market demand is given as Q_D= 150 - 3P.Market supply is given as Q_S= 2P + 50.Which legally imposed price would constitute a binding price ceiling