Exam 7: Government Actions in Markets

-The graph shows the labor market for painters. The lower the wage rate, the ________ is the quantity of painters that firms demand and the ________ is the quantity of painters that households are willing to supply.

To be effective in raising people's wages, a minimum wage must be set

Is the minimum wage fair?

Suppose that the government imposes a price ceiling on gasoline that is below the equilibrium price. The black market for gasoline is ________ market in which the price ________ ceiling price.

-In the figure above, if the wage rate is $6 per hour, then the

The demand for insulin is quite inelastic. The demand for Pepsi is quite elastic. Suppose the elasticity of supply for insulin is the same as the elasticity of supply for Pepsi. If a $0.20 tax was imposed on each of these goods (holding everything else constant), which consumers would pay more of the tax?

-The figure above shows the market for tires. The figure shows that the government has imposed a tax of ________ per tire.

In the market for cotton, suppose the equilibrium price is $10 per ton and the equilibrium quantity is 100 tons. If the government then imposes a price support of $20 per ton,

-The above figure shows the market for buckets of golf balls at the driving range. A new leisure time tax is placed on suppliers in this market, shifting the supply curve from S₀ to S₁. The amount of this tax is ________ per bucket of golf balls.

Rent ceilings are difficult to abolish because

The figure above shows the market for sugar beets. The government intervenes in this market and sets a support price at $35 a ton. -The figure above shows that the government provides a subsidy to the farmers of ________ million.

-The above figure shows the supply curves in four different markets. If each of the markets has an identical downward sloping demand curve and the same tax is levied on suppliers, which market would produce the largest amount of deadweight loss?

Both price supports and a price floor can

Suppose the supply of apartments in Minneapolis is perfectly elastic. The effect of a $100 per month tax on all apartments is that

When a rent ceiling law is passed in a city, which of the following occurs?

Neither the demand nor the supply of automobiles is perfectly elastic or inelastic. If the government imposes a $1,000 tax on automobiles, then the price of an automobile

A sales tax imposed on tires ________ consumer surplus and ________ producer surplus.

When a price support is set above the equilibrium price, producers ________ the quantity supplied and consumers ________ the quantity demanded.

-The graph shows the market for rental housing in Little Rock. The market for apartments is efficient when ________.

Labor unions support the minimum wage because