Exam 6: Government Actions in Markets

Suppose the cost of breaking the law is imposed on the buyers of an illegal good.This action will have its biggest impact on quantity if the demand for the good is

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

A price ceiling set below the equilibrium price will result in

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 a sales tax is imposed on sellers, the supply curve shifts so that the vertical distance between the original supply curve and supply plus tax curve equals the

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

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.There is a minimum wage set at $6 per hour.Suppose a new fast food restaurant opens and increases the quantity demanded of teenage labour by 400 hours per week at each wage rate.The result is

Use the table below to answer the following questions. Table 6.1.1 -Refer to Table 6.1.1, which gives the demand schedule and the supply schedule for the apartment market in Anytown, Alberta.If a rent ceiling of $300 is imposed in the apartment market, then

Use the figure below to answer the following questions. Figure 6.3.2 -Refer to Figure 6.3.2.The deadweight loss from the sales tax is

Provincial governments across Canada recently started legalizing and then heavily taxing gambling at casinos.The new taxes are lower than the cost of breaking the law was to the sellers of the previously illegal casino services.The costs of breaking the law to the buyers of these services also fell to zero.This change will likely lead to

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

A $10 per-unit tax on MP3 players raises the equilibrium price paid by consumers by $5.The quantity sold before the tax was 5,000 per year.The revenue from the tax is

Use the figure below to answer the following questions. Figure 6.3.2 -Refer to Figure 6.3.2.The buyers' share of the tax is

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

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 a new fast food restaurant opens and increases the quantity demanded of teenage labour by 400 hours per week at each wage rate.If the teenage labour market is unregulated, there is an increase in teenage employment to

Discrimination allocates scarce housing

If enforcement of the law is aimed at buyers of an illegal good, the result will be

The demand for a good and the supply of a good are each neither perfectly elastic nor perfectly inelastic.If a sales tax on sellers of the good is imposed, the tax is paid by

All of the following statements about legalizing and taxing drugs are true except

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.The tax on each frisbee is