A) and discrimination according to seller bias are both inefficient rationing mechanisms because they both waste buyers' time. B) and discrimination according to seller bias are both inefficient rationing mechanisms because the good does not necessarily go to the buyer who values it most highly. C) are an inefficient rationing mechanism because they waste buyers' time, and discrimination according to seller bias is an inefficient rationing mechanism because the good does not necessarily go to the buyer who values it most highly. D) are an inefficient rationing mechanism because the good does not necessarily go to the buyer who values it most highly, and discrimination according to seller bias is an inefficient rationing mechanism because it wastes buyers' time. A) and discrimination according to seller bias are both inefficient rationing mechanisms because they both waste buyers' time. B) and discrimination according to seller bias are both inefficient rationing mechanisms because the good does not necessarily go to the buyer who values it most highly. C) are an inefficient rationing mechanism because they waste buyers' time, and discrimination according to seller bias is an inefficient rationing mechanism because the good does not necessarily go to the buyer who values it most highly. D) are an inefficient rationing mechanism because the good does not necessarily go to the buyer who values it most highly, and discrimination according to seller bias is an inefficient rationing mechanism because it wastes buyers' time.

Exam 6: Supply, Demand, and Government Policies

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The housing shortages caused by rent control are larger in the long run than in the short run because both the supply of housing and the demand for housing are more elastic in the long run.

(True/False)

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Question 421

If a tax is imposed on the sellers of a product, then the tax burden will fall entirely on the sellers.

(True/False)

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Question 422

Binding price ceilings benefit consumers because they allow consumers to buy all the goods they demand at a lower price.

(True/False)

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Question 423

In 2009, the U.S. minimum wage according to federal law was

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Question 424

The wedge between the buyers' price and the sellers' price is the same, regardless of whether the tax is levied on buyers or sellers.

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Question 425

Lawmakers can decide whether the buyers or the sellers must send a tax to the government, but they cannot legislate the true burden of a tax.

(True/False)

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Question 426

A tax on a market with elastic demand and elastic supply will shrink the market more than a tax on a market with inelastic demand and inelastic supply will shrink the market.

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Question 427

Long lines

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Question 428

When a tax is levied on buyers of tea,

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Question 429

Even though federal law mandates that workers and firms each pay half of the total FICA tax, the tax burden may not fall equally on workers and firms.

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Question 430

Figure 6-16 -Refer to Figure 6-16. Suppose a tax of $5 per unit is imposed on this market. What will be the new equilibrium quantity in this market?

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Question 431

Suppose the government has imposed a price floor on cellular phones. Which of the following events could transform the price floor from one that is binding to one that is not binding?

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Question 432

If the equilibrium wage is $4 per hour and the minimum wage is $5.15 per hour, then a shortage of labor will exist.

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Question 433

A large majority of economists favor eliminating the minimum wage.

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Question 434

The proportion of minimum-wage earners who are in families with incomes below the poverty line is

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Question 435

Which of the following is not correct?

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Question 436

Suppose sellers of perfume are required to send $1.00 to the government for every bottle of perfume they sell. Further, suppose this tax causes the price paid by buyers of perfume to rise by $0.60 per bottle. Which of the following statements is correct?

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Question 437

Figure 6-19 -Refer to Figure 6-19. The price paid by buyers after the tax is imposed is

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Question 438

The price received by sellers in a market will increase if the government

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Question 439

In the United States, before OPEC increased the price of crude oil in 1973, there was

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Question 440

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Exam 6: Supply, Demand, and Government Policies

The housing shortages caused by rent control are larger in the long run than in the short run because both the supply of housing and the demand for housing are more elastic in the long run.

If a tax is imposed on the sellers of a product, then the tax burden will fall entirely on the sellers.

Binding price ceilings benefit consumers because they allow consumers to buy all the goods they demand at a lower price.

In 2009, the U.S. minimum wage according to federal law was

The wedge between the buyers' price and the sellers' price is the same, regardless of whether the tax is levied on buyers or sellers.

Lawmakers can decide whether the buyers or the sellers must send a tax to the government, but they cannot legislate the true burden of a tax.

A tax on a market with elastic demand and elastic supply will shrink the market more than a tax on a market with inelastic demand and inelastic supply will shrink the market.

Long lines

When a tax is levied on buyers of tea,

Even though federal law mandates that workers and firms each pay half of the total FICA tax, the tax burden may not fall equally on workers and firms.

Figure 6-16 -Refer to Figure 6-16. Suppose a tax of $5 per unit is imposed on this market. What will be the new equilibrium quantity in this market?

Suppose the government has imposed a price floor on cellular phones. Which of the following events could transform the price floor from one that is binding to one that is not binding?

If the equilibrium wage is $4 per hour and the minimum wage is $5.15 per hour, then a shortage of labor will exist.

A large majority of economists favor eliminating the minimum wage.

The proportion of minimum-wage earners who are in families with incomes below the poverty line is

Which of the following is not correct?

Suppose sellers of perfume are required to send $1.00 to the government for every bottle of perfume they sell. Further, suppose this tax causes the price paid by buyers of perfume to rise by $0.60 per bottle. Which of the following statements is correct?

Figure 6-19 -Refer to Figure 6-19. The price paid by buyers after the tax is imposed is

The price received by sellers in a market will increase if the government

In the United States, before OPEC increased the price of crude oil in 1973, there was

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

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomic Models

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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