Question 1

If the government passes a law requiring buyers of college textbooks to send $5 to the government for every textbook they buy, then

Accepted Answer

A)  the demand curve for textbooks shifts downward by $5. 
B)  buyers of textbooks pay $5 more per textbook than they were paying before the tax. 
C)  sellers of textbooks are unaffected by the tax. 
D)  All of the above are correct. 
A)  the demand curve for textbooks shifts downward by $5. 
B)  buyers of textbooks pay $5 more per textbook than they were paying before the tax. 
C)  sellers of textbooks are unaffected by the tax. 
D)  All of the above are correct.

Question 2

If a price floor is not binding, then it will have no effect on the market.

Accepted Answer

A) True 
 B)False

Question 3

When a binding price floor is imposed on a market to benefit sellers,

Accepted Answer

A)  no sellers actually benefit. 
B)  some sellers benefit, but no sellers are harmed. 
C)  some sellers benefit, and some sellers are harmed. 
D)  all sellers benefit. 
A)  no sellers actually benefit. 
B)  some sellers benefit, but no sellers are harmed. 
C)  some sellers benefit, and some sellers are harmed. 
D)  all sellers benefit.

Question 4

Scenario 6-2
Suppose demand for a product is given by the equation   and supply for the product is given by the equation  
-Refer to Scenario 6-2. Suppose the government sets a price ceiling at $12 for this product. Is this price ceiling binding, and what will be the size of the shortage/surplus in this market?

Accepted Answer

The price ceiling wi

Question 5

Table 6-6
  
-Refer to Table 6-6. In this market, over what range of prices would a price ceiling set by the government be binding?

Accepted Answer

A price ceiling must be set be

Question 6

In 1990, Congress passed a new luxury tax on items such as yachts, private airplanes, furs, jewelry, and expensive cars. The goal of the tax was to

Accepted Answer

A)  raise revenue from the wealthy. 
B)  prevent wealthy people from buying luxuries. 
C)  force producers of luxury goods to reduce employment. 
D)  limit exports of luxury goods to other countries. 
A)  raise revenue from the wealthy. 
B)  prevent wealthy people from buying luxuries. 
C)  force producers of luxury goods to reduce employment. 
D)  limit exports of luxury goods to other countries.

Question 7

Suppose buyers of vodka are required to send $5.00 to the government for every bottle of vodka they buy. Further, suppose this tax causes the effective price received by sellers of vodka to fall by $3.00 per bottle. Which of the following statements is correct?

Accepted Answer

A)  This tax causes the demand curve for vodka to shift downward by $5.00 at each quantity of vodka. 
B)  The price paid by buyers is $2.00 per bottle more than it was before the tax. 
C)  Sixty percent of the burden of the tax falls on sellers. 
D)  All of the above are correct. 
A)  This tax causes the demand curve for vodka to shift downward by $5.00 at each quantity of vodka. 
B)  The price paid by buyers is $2.00 per bottle more than it was before the tax. 
C)  Sixty percent of the burden of the tax falls on sellers. 
D)  All of the above are correct.

Question 8

Economic policies often have effects that their architects did not intend or anticipate.

Accepted Answer

A) True 
 B)False

If the government passes a law requiring buyers of college textbooks to send $5 to the government for every textbook they buy, then

If a price floor is not binding, then it will have no effect on the market.

When a binding price floor is imposed on a market to benefit sellers,

Table 6-6 -Refer to Table 6-6. In this market, over what range of prices would a price ceiling set by the government be binding?

In 1990, Congress passed a new luxury tax on items such as yachts, private airplanes, furs, jewelry, and expensive cars. The goal of the tax was to

Suppose buyers of vodka are required to send $5.00 to the government for every bottle of vodka they buy. Further, suppose this tax causes the effective price received by sellers of vodka to fall by $3.00 per bottle. Which of the following statements is correct?

Economic policies often have effects that their architects did not intend or anticipate.

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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Exam 6: Supply, Demand, and Government Policies

If the government passes a law requiring buyers of college textbooks to send $5 to the government for every textbook they buy, then

If a price floor is not binding, then it will have no effect on the market.

When a binding price floor is imposed on a market to benefit sellers,

Table 6-6 -Refer to Table 6-6. In this market, over what range of prices would a price ceiling set by the government be binding?

In 1990, Congress passed a new luxury tax on items such as yachts, private airplanes, furs, jewelry, and expensive cars. The goal of the tax was to

Suppose buyers of vodka are required to send $5.00 to the government for every bottle of vodka they buy. Further, suppose this tax causes the effective price received by sellers of vodka to fall by $3.00 per bottle. Which of the following statements is correct?

Economic policies often have effects that their architects did not intend or anticipate.

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

Filters