Exam 6: Government Actions in Markets

Use the figure below to answer the following questions. Figure 6.3.1 -Refer to Figure 6.3.1 showing the market for frisbees before and after a tax is imposed.Between 4,000 and 5,000 frisbees, supply is

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

First-come, first-served allocates housing to those

Cigarette Taxes, Black Markets, and Crime: Lessons from New York's 50-Year Losing Battle New York City has the highest cigarette taxes in the country. During the four months following the recent tax hike, sales of taxed cigarettes in the city fell by more than 50 percent as consumers turned to the city's bustling black market. The thriving illegal market for cigarettes has diverted billions of dollars from legitimate businesses and governments to criminals. Source: Cato Institute, February 6, 2003 -A subsidy is a

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 sellers' share of the tax is

If enforcement is aimed at sellers of an illegal good, the

Governments tend to tax items with inelastic demand because

Use the figure below to answer the following questions. Figure 6.1.1 -Consider the market for rental housing illustrated in Figure 6.1.1 when the demand curve is D₀.The equilibrium in an unregulated market is

Use the table below to answer the following questions. Table 6.2.2 -Refer to Table 6.2.2.What is the equilibrium wage rate in an unregulated market?

According to the fair rules view of fairness, a fair outcome in the housing market

Use the figure below to answer the following questions. Figure 6.3.2 -Refer to Figure 6.3.2.Between 200 and 300 units, demand is

If a sales tax is imposed on food, who is likely to pay most of the tax?

Use the figure below to answer the following questions. Figure 6.1.2 -Refer to Figure 6.1.2.What would be the maximum black market price of the good if a price ceiling is set at $10 a unit?

An effective rent ceiling

If the price of a good is not affected by a tax, then

A lottery allocates housing to those

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 $6 per hour.Teenage unemployment is ________ hours a week.

The burden of tax on sellers is greater the more (1) elastic is demand. (2) inelastic is demand. (3) elastic is supply. (4) inelastic is supply.

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.

Use the table below to answer the following questions. Table 6.5.1 The Market for a Prohibited Good -Refer to Table 6.5.1.If a $2-per-unit cost of breaking the law is imposed on buyers, the new price is ________ and the new equilibrium quantity is ________ units.