Question 1

Figure 6-10
  
-Refer to Figure 6-10.What is the price sellers receive after the tax is imposed

Accepted Answer

A) $1.00 
B) $3.50 
C) $5.00 
D) $6.00 
A) $1.00 
B) $3.50 
C) $5.00 
D) $6.00

Question 2

Which of the following is a result of price controls

Accepted Answer

A) an equitable outcome 
B) an efficient outcome 
C) additional inequities 
D) revenue for the government 
A) an equitable outcome 
B) an efficient outcome 
C) additional inequities 
D) revenue for the government

Question 3

Figure 6-8
  
-Refer to Figure 6-8.What is the price sellers receive after the tax is imposed

Accepted Answer

A) $5.00 
B) $6.00 
C) $7.00 
D) $8.00 
A) $5.00 
B) $6.00 
C) $7.00 
D) $8.00

Question 4

What effect does a tax on buyers of popcorn have on the popcorn market

Accepted Answer

A) Demand decreases and the size of the popcorn market increases. 
B) Demand decreases and the size of the popcorn market decreases. 
C) Supply decreases and the size of the popcorn market increases. 
D) Supply decreases and the size of the popcorn market decreases. 
A) Demand decreases and the size of the popcorn market increases. 
B) Demand decreases and the size of the popcorn market decreases. 
C) Supply decreases and the size of the popcorn market increases. 
D) Supply decreases and the size of the popcorn market decreases.

Question 5

What is the case when a price ceiling is not binding

Accepted Answer

A) The equilibrium price is above the ceiling. 
B) The equilibrium price is below the ceiling. 
C) It has no legal enforcement mechanism. 
D) People must voluntarily agree to abide by it. 
A) The equilibrium price is above the ceiling. 
B) The equilibrium price is below the ceiling. 
C) It has no legal enforcement mechanism. 
D) People must voluntarily agree to abide by it.

Question 6

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 floor

Accepted Answer

A) $5 
B) $10 
C) $30 
D) $50 
A) $5 
B) $10 
C) $30 
D) $50

Question 7

Figure 6-11
  
-Refer to Figure 6-11.In which markets will the tax be most equally divided between the buyer and the seller

Accepted Answer

A) market (a) and (b) 
B) market (b) and (c) 
C) market (c) and (d) 
D) market (d) and (a) 
A) market (a) and (b) 
B) market (b) and (c) 
C) market (c) and (d) 
D) market (d) and (a)

Question 8

What is a government-imposed maximum price at which a good can be sold

Accepted Answer

A) a price floor 
B) a price ceiling 
C) a price support 
D) a price equilibrium 
A) a price floor 
B) a price ceiling 
C) a price support 
D) a price equilibrium

Question 9

Figure 6-2
  
-Refer to Figure 6-2.If the government imposes a binding price floor of $14.00 in this market,what is the result

Accepted Answer

A) a surplus of 30 units 
B) a shortage of 30 units 
C) a surplus of 40 units 
D) a shortage of 40 units 
A) a surplus of 30 units 
B) a shortage of 30 units 
C) a surplus of 40 units 
D) a shortage of 40 units

Question 10

Figure 6-8
  
-Refer to Figure 6-8.What is the amount of the tax imposed in this market

Accepted Answer

A) $1.00 per unit 
B) $1.50 per unit 
C) $2.50 per unit 
D) $3.00 per unit 
A) $1.00 per unit 
B) $1.50 per unit 
C) $2.50 per unit 
D) $3.00 per unit

Question 11

The incidence of a tax depends on whether the tax is levied on buyers or sellers.

Accepted Answer

A) True 
 B)False

Question 12

When is a price floor NOT binding

Accepted Answer

A) when the price floor is higher than the equilibrium market price 
B) when the price floor is lower than the equilibrium market price 
C) when people are willing to buy less when the price floor is imposed than they did before 
D) when the government sets it 
A) when the price floor is higher than the equilibrium market price 
B) when the price floor is lower than the equilibrium market price 
C) when people are willing to buy less when the price floor is imposed than they did before 
D) when the government sets it

Question 13

Figure 6-10
  
-Refer to Figure 6-10.What is the amount of the tax per unit imposed in this market

Accepted Answer

A) $1.00 
B) $1.50 
C) $2.50 
D) $3.50 
A) $1.00 
B) $1.50 
C) $2.50 
D) $3.50

Question 14

What do we know about price ceilings and price floors

Accepted Answer

A) They are desirable because they make markets more efficient as well as equitable. 
B) They cause surpluses and shortages to persist since price cannot adjust to the market equilibrium price. 
C) They can be enacted to restore a market to equilibrium. 
D) They are imposed because they can make low-income households in the economy better off without causing adverse effects. 
A) They are desirable because they make markets more efficient as well as equitable. 
B) They cause surpluses and shortages to persist since price cannot adjust to the market equilibrium price. 
C) They can be enacted to restore a market to equilibrium. 
D) They are imposed because they can make low-income households in the economy better off without causing adverse effects.

Question 15

Suppose that the demand for pasta is price inelastic and the supply of pasta is price elastic,and that the demand for gasoline is price inelastic and the supply of gasoline is price elastic.If a tax were levied on the sellers of both of these commodities,who would we expect to have to pay most of the tax

Accepted Answer

A) sellers of both goods 
B) buyers of both goods 
C) sellers of gaoline and buyers of pasta 
D) buyers of pasta and sellers of gasoline 
A) sellers of both goods 
B) buyers of both goods 
C) sellers of gaoline and buyers of pasta 
D) buyers of pasta and sellers of gasoline

Question 16

What is a legal maximum price at which a good can be sold

Accepted Answer

A) a price floor 
B) a price stabilization 
C) a price support 
D) a price ceiling 
A) a price floor 
B) a price stabilization 
C) a price support 
D) a price ceiling

Question 17

Using the equations shown below,answer the following questions.
QD = 38 - 3P
QS = -2 + P
a.What is the equilibrium price and quantity in this market
b.Assuming a tax of $2 is imposed on the seller side,what is the equilibrium price and quantity after the tax
c.How much of the tax will the buyers pay
d.How much of the tax will the sellers pay
e.What is the effective price the sellers receive

Accepted Answer

a. Equilibrium price is $10 and equilibr

Question 18

Figure 6-8
  
-Refer to Figure 6-8.What is the equilibrium price in the market before the tax is imposed

Accepted Answer

A) $3.00 
B) $5.00 
C) $6.00 
D) $8.00 
A) $3.00 
B) $5.00 
C) $6.00 
D) $8.00

Question 19

Which argument would opponents of the minimum wage NOT put forward

Accepted Answer

A) encourages teenage dropouts 
B) causes unemployment 
C) prevents on-the-job training 
D) targets only those with incomes below the poverty line 
A) encourages teenage dropouts 
B) causes unemployment 
C) prevents on-the-job training 
D) targets only those with incomes below the poverty line

Question 20

If a tax is imposed on the buyers of raw honey,who will bear the burden of the tax

Accepted Answer

A) Buyers bear the entire burden of the tax. 
B) Sellers bear the entire burden of the tax. 
C) Buyers and sellers share the burden of the tax. 
D) The government bears the entire burden of the tax. 
A) Buyers bear the entire burden of the tax. 
B) Sellers bear the entire burden of the tax. 
C) Buyers and sellers share the burden of the tax. 
D) The government bears the entire burden of the tax.

Figure 6-10 -Refer to Figure 6-10.What is the price sellers receive after the tax is imposed

Which of the following is a result of price controls

Figure 6-8 -Refer to Figure 6-8.What is the price sellers receive after the tax is imposed

What effect does a tax on buyers of popcorn have on the popcorn market

What is the case when a price ceiling is not binding

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 floor

Figure 6-11 -Refer to Figure 6-11.In which markets will the tax be most equally divided between the buyer and the seller

What is a government-imposed maximum price at which a good can be sold

Figure 6-2 -Refer to Figure 6-2.If the government imposes a binding price floor of $14.00 in this market,what is the result

Figure 6-8 -Refer to Figure 6-8.What is the amount of the tax imposed in this market

The incidence of a tax depends on whether the tax is levied on buyers or sellers.

When is a price floor NOT binding

Figure 6-10 -Refer to Figure 6-10.What is the amount of the tax per unit imposed in this market

What do we know about price ceilings and price floors

What is a legal maximum price at which a good can be sold

Figure 6-8 -Refer to Figure 6-8.What is the equilibrium price in the market before the tax is imposed

Which argument would opponents of the minimum wage NOT put forward

If a tax is imposed on the buyers of raw honey,who will bear the burden of the tax

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

Figure 6-10 -Refer to Figure 6-10.What is the price sellers receive after the tax is imposed

Which of the following is a result of price controls

Figure 6-8 -Refer to Figure 6-8.What is the price sellers receive after the tax is imposed

What effect does a tax on buyers of popcorn have on the popcorn market

What is the case when a price ceiling is not binding

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 floor

Figure 6-11 -Refer to Figure 6-11.In which markets will the tax be most equally divided between the buyer and the seller

What is a government-imposed maximum price at which a good can be sold

Figure 6-2 -Refer to Figure 6-2.If the government imposes a binding price floor of $14.00 in this market,what is the result

Figure 6-8 -Refer to Figure 6-8.What is the amount of the tax imposed in this market

The incidence of a tax depends on whether the tax is levied on buyers or sellers.

When is a price floor NOT binding

Figure 6-10 -Refer to Figure 6-10.What is the amount of the tax per unit imposed in this market

What do we know about price ceilings and price floors

What is a legal maximum price at which a good can be sold

Figure 6-8 -Refer to Figure 6-8.What is the equilibrium price in the market before the tax is imposed

Which argument would opponents of the minimum wage NOT put forward

If a tax is imposed on the buyers of raw honey,who will bear the burden of the tax

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