Exam 6: Governments Actions in Markets

Use the table below to answer the following questions. Table 6.2.1 -Table 6.2.1 gives the supply and demand schedules for teenage labour in Genoa City. In an unregulated market,

Use the figure below to answer the following questions. Figure 6.3.3 -Refer to Figure 6.3.3. Suppose a tax of $1 is imposed. In which market would tax revenue be the highest?

Suppose the demand for CDs is elastic, but not perfectly elastic, and the supply is inelastic, but not perfectly inelastic. A tax on CDs is paid

An effective minimum wage ________ the firms' surplus and ________ the workers' surplus.

Use the table below to answer the following questions. Table 6.2.2 -Refer to Table 6.2.2. What is the level of unemployment in millions of hours if the minimum wage is set at $7 per hour?

Suppose the Canadian Dairy Commission sets a production quota for dairy production above the equilibrium quantity. Then,

If the penalty on sellers of an illegal good is less than the penalty on buyers of an illegal good, then supply of the good will ________ by ________ demand and the price of the good will ________.

When rent is not permitted to allocate scarce housing, what other mechanisms are available?

Use the table below to answer the following questions. Table 6.2.2 -Refer to Table 6.2.2. What is the level of unemployment in millions of hours if the minimum wage is set at $3 per hour?

If the supply of a good is perfectly inelastic, then a tax on the good will be paid

Use the table below to answer the following questions. Table 6.3.1 -Refer to Table 6.3.1. Suppose a sales tax of $2 a unit is imposed on the good described in the table. The buyers' share of the tax is

Use the table below to answer the following questions. Table 6.3.1 -Refer to Table 6.3.1. Suppose a sales tax of $2 a unit is imposed on the good described in the table. The new price paid by consumers is $ ________ and ________ units are sold.

Use the information below to answer the following questions. Fact 6.5.1 Hollywood: Organized Crime Hits the Movies The Mexican army seized 1,180 disc burners and 3.14 million copies of movies and TV shows from 23 warehouses in a move to fight piracy that costs Hollywood about $590 million a year. Source: Bloomberg, Businessweek, April 7, 2011 Assume that the marginal cost of producing a DVD (legal or illegal)is a constant $3 and that legal DVDs bear an additional marginal cost of $5 each in royalty payments to film studios. -Refer to Fact 6.5.1. With no penalty on buyers, if a penalty for breaking the law is imposed on sellers at more than $5 a disc, the equilibrium price of an illegal disc

A production quota is set below the equilibrium quantity. At the quota quantity, marginal social benefit is ________ marginal social cost and the level of production is ________.

Use the table below to answer the following questions. Table 6.2.1 -Table 6.2.1 gives the supply and demand schedules for teenage labour in Genoa City. Suppose the Genoa City Council sets a minimum wage of $4 per hour. Teenage unemployment is ________ hours a week.

Complete the following sentence. A price floor set below the equilibrium price results in

A fact that argues in favour of prohibition and against taxes on illegal drugs is that

A 3 cents per-unit tax on bread leads to no change in the quantity bought and sold. The tax is paid

Which one of the following statements is false?

In an unregulated housing market with no rent ceiling, the rent is determined by the