Question 1

A tax on the buyers of personal computer external hard drives encourages

Accepted Answer

A)  sellers to supply a smaller quantity at every price. 
B)  buyers to demand a smaller quantity at every price. 
C)  buyers to demand a larger quantity at every price. 
D)  Both a) and b) are correct. 
A)  sellers to supply a smaller quantity at every price. 
B)  buyers to demand a smaller quantity at every price. 
C)  buyers to demand a larger quantity at every price. 
D)  Both a) and b) are correct.

Question 2

When a tax is placed on the buyers of lemonade, the

Accepted Answer

A)  sellers bear the entire burden of the tax. 
B)  buyers bear the entire burden of the tax. 
C)  burden of the tax will be always be equally divided between the buyers and the sellers. 
D)  burden of the tax will be shared by the buyers and the sellers, but the division of the burden is not always equal. 
A)  sellers bear the entire burden of the tax. 
B)  buyers bear the entire burden of the tax. 
C)  burden of the tax will be always be equally divided between the buyers and the sellers. 
D)  burden of the tax will be shared by the buyers and the sellers, but the division of the burden is not always equal.

Question 3

Figure 6-13
This figure shows the market demand and market supply curves for good X.  
-Refer to Figure 6-13. Which of the following price ceilings would be binding in this market?

Accepted Answer

A)  $4 
B)  $5 
C)  $6 
D)  $7 
A)  $4 
B)  $5 
C)  $6 
D)  $7

Question 4

Figure 6-24  
-Refer to Figure 6-24. Suppose sellers, rather than buyers, were required to pay this tax in the same amount per unit as shown in the graph). Relative to the tax on buyers, the tax on sellers would result in

Accepted Answer

A)  buyers bearing the same share of the tax burden. 
B)  sellers bearing the same share of the tax burden. 
C)  the same amount of tax revenue for the government. 
D)  All of the above are correct. 
A)  buyers bearing the same share of the tax burden. 
B)  sellers bearing the same share of the tax burden. 
C)  the same amount of tax revenue for the government. 
D)  All of the above are correct.

Question 5

Figure 6-29
Suppose the government imposes a $2 on this market.  
-Refer to Figure 6-29. Suppose D1 represents the demand curve for gasoline in both the short run and long run, S1 represents the supply curve for gasoline in the short run, and S2 represents the supply curve for gasoline in the long run. After the imposition of the $2, the price paid by buyers will be

Accepted Answer

A)  higher in the long run than in the short run. 
B)  higher in the short run than in the long run. 
C)  equivalent in the short run and the long run. 
D)  unable to be determined without additional information. 
A)  higher in the long run than in the short run. 
B)  higher in the short run than in the long run. 
C)  equivalent in the short run and the long run. 
D)  unable to be determined without additional information.

Question 6

Figure 6-6  
-Refer to Figure 6-6. Which of the following price floors would be binding in this market?

Accepted Answer

A)  $6 
B)  $8 
C)  $10 
D)  $4 
A)  $6 
B)  $8 
C)  $10 
D)  $4

Question 7

Economists generally believe that rent control is

Accepted Answer

A)  an efficient and fair way to help the poor. 
B)  inefficient but the best available means of solving a serious social problem. 
C)  a highly inefficient way to help the poor raise their standard of living. 
D)  an efficient way to allocate housing, but not a good way to help the poor. 
A)  an efficient and fair way to help the poor. 
B)  inefficient but the best available means of solving a serious social problem. 
C)  a highly inefficient way to help the poor raise their standard of living. 
D)  an efficient way to allocate housing, but not a good way to help the poor.

Question 8

A binding minimum wage raises the incomes of some workers, but it lowers the incomes of workers who cannot find jobs.

Accepted Answer

A) True 
 B)False

Question 9

Table 6-1
  
-Refer to Table 6-1. Suppose the government imposes a price floor of $70 on this market. What will be the size of the surplus in this market?

Accepted Answer

A)  0 units 
B)  400 units 
C)  600 units 
D)  1000 units 
A)  0 units 
B)  400 units 
C)  600 units 
D)  1000 units

Question 10

A price floor set above the equilibrium price causes quantity supplied to exceed quantity demanded.

Accepted Answer

A) True 
 B)False

Question 11

Price ceilings are typically imposed to benefit sellers.

Accepted Answer

A) True 
 B)False

Question 12

Prices are inefficient rationing devices.

Accepted Answer

A) True 
 B)False

Question 13

Figure 6-6  
-Refer to Figure 6-6. If the government imposes a price ceiling of $6 on this market, then there will be

Accepted Answer

A)  no shortage. 
B)  a shortage of 10 units. 
C)  a shortage of 20 units. 
D)  a shortage of 30 units. 
A)  no shortage. 
B)  a shortage of 10 units. 
C)  a shortage of 20 units. 
D)  a shortage of 30 units.

Question 14

A tax on sellers will shift the

Accepted Answer

A)  demand curve upward by the amount of the tax. 
B)  demand curve downward by the amount of the tax. 
C)  supply curve upward by the amount of the tax. 
D)  supply curve downward by the amount of the tax. 
A)  demand curve upward by the amount of the tax. 
B)  demand curve downward by the amount of the tax. 
C)  supply curve upward by the amount of the tax. 
D)  supply curve downward by the amount of the tax.

Question 15

A tax imposed on the sellers of a good will

Accepted Answer

A)  raise both the price buyers pay and the effective price sellers receive. 
B)  raise the price buyers pay and lower the effective price sellers receive. 
C)  lower the price buyers pay and raise the effective price sellers receive. 
D)  lower both the price buyers pay and the effective price sellers receive. 
A)  raise both the price buyers pay and the effective price sellers receive. 
B)  raise the price buyers pay and lower the effective price sellers receive. 
C)  lower the price buyers pay and raise the effective price sellers receive. 
D)  lower both the price buyers pay and the effective price sellers receive.

Question 16

Workers with high skills and much experience are not typically affected by the minimum wage.

Accepted Answer

A) True 
 B)False

Question 17

In 2012, the U.S. minimum wage according to federal law was

Accepted Answer

A)  $4.25 per hour. 
B)  $5.15 per hour. 
C)  $5.75 per hour. 
D)  $7.25 per hour. 
A)  $4.25 per hour. 
B)  $5.15 per hour. 
C)  $5.75 per hour. 
D)  $7.25 per hour.

Question 18

Figure 6-34  
-Refer to Figure 6-34. If the government imposes a tax of $6 per unit in this market, how much is the burden of the tax on the buyers in this market?

Accepted Answer

With a $6 tax per unit, the pr

Question 19

If the minimum wage exceeds the equilibrium wage, then

Accepted Answer

A)  the quantity demanded of labor will exceed the quantity supplied. 
B)  the quantity supplied of labor will exceed the quantity demanded. 
C)  the minimum wage will not be binding. 
D)  there will be no unemployment. 
A)  the quantity demanded of labor will exceed the quantity supplied. 
B)  the quantity supplied of labor will exceed the quantity demanded. 
C)  the minimum wage will not be binding. 
D)  there will be no unemployment.

Question 20

One common example of a price ceiling is rent control.

Accepted Answer

A) True 
 B)False

Exam 6: Supply, Demand, and Government Policies

A tax on the buyers of personal computer external hard drives encourages

When a tax is placed on the buyers of lemonade, the

Figure 6-13 This figure shows the market demand and market supply curves for good X. -Refer to Figure 6-13. Which of the following price ceilings would be binding in this market?

Figure 6-24 -Refer to Figure 6-24. Suppose sellers, rather than buyers, were required to pay this tax in the same amount per unit as shown in the graph). Relative to the tax on buyers, the tax on sellers would result in

Figure 6-6 -Refer to Figure 6-6. Which of the following price floors would be binding in this market?

Economists generally believe that rent control is

A binding minimum wage raises the incomes of some workers, but it lowers the incomes of workers who cannot find jobs.

Table 6-1 -Refer to Table 6-1. Suppose the government imposes a price floor of $70 on this market. What will be the size of the surplus in this market?

A price floor set above the equilibrium price causes quantity supplied to exceed quantity demanded.

Price ceilings are typically imposed to benefit sellers.

Prices are inefficient rationing devices.

Figure 6-6 -Refer to Figure 6-6. If the government imposes a price ceiling of $6 on this market, then there will be

A tax on sellers will shift the

A tax imposed on the sellers of a good will

Workers with high skills and much experience are not typically affected by the minimum wage.

In 2012, the U.S. minimum wage according to federal law was

Figure 6-34 -Refer to Figure 6-34. If the government imposes a tax of $6 per unit in this market, how much is the burden of the tax on the buyers in this market?

If the minimum wage exceeds the equilibrium wage, then

One common example of a price ceiling is rent control.

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 Macroeconomics: Basic Concepts

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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