Question 1

The minimum wage has its greatest impact on the market for

Accepted Answer

A)  female labor.
B)  older labor.
C)  black labor.
D)  teenage labor.E) B) and D)
F) B) and C)

Question 2

Table 6-1
   Price  Quantity  Denanded  Quantity  Sugplied $[12120$1102$284$366$448$5210$6012\begin{array} { | c | c | c | } \hline 	ext { Price } & \begin{array} { c } 	ext { Quantity } \	ext { Denanded }\end{array} & \begin{array} { c } 	ext { Quantity } \	ext { Sugplied }\end{array} \\hline \$ [ 12 & 12 & 0 \\hline \$ 1 & 10 & 2 \\hline \$ 2 & 8 & 4 \\hline \$ 3 & 6 & 6 \\hline \$ 4 & 4 & 8 \\hline \$ 5 & 2 & 10 \\hline \$ 6 & 0 & 12 \\hline\end{array} Price $[12$1$2$3$4$5$6​ Quantity  Denanded ​121086420​ Quantity  Sugplied ​024681012​​ 
-Refer to Table 6-1. Which of the following price floors would be binding in this market?

Accepted Answer

A)  $1
B)  $2
C)  $3
D)  $4 E) A) and C)
F) B) and C)

Question 3

When a tax is placed on the sellers of cell phones, the size of the cell phone market

Accepted Answer

A)  and the effective price received by sellers both increase.
B)  increases, but the effective price received by sellers decreases.
C)  decreases, but the effective price received by sellers increases.
D)  and the effective price received by sellers both decrease.E) C) and D)
F) B) and C)

Question 4

Figure 6-2 
-Refer to Figure 6-2. The price ceiling

Accepted Answer

A)  is binding.
B)  causes a shortage.
C)  causes the quantity demanded to exceed the quantity supplied.
D)  All of the above are correct.E) A) and B)
F) B) and D)

Question 5

An outcome that can result from either a price ceiling or a price floor is

Accepted Answer

A)  an enhancement of efficiency.
B)  undesirable rationing mechanisms.
C)  a surplus.
D)  a shortage.E) None of the above
F) C) and D)

Question 6

One common example of a price floor is the minimum wage.

Accepted Answer

A) True 
 B)False

Question 7

Price ceilings are typically imposed to benefit sellers.

Accepted Answer

A) True 
 B)False

Question 8

The goal of rent control is to help the poor by making housing more affordable.

Accepted Answer

A) True 
 B)False

Question 9

A tax on buyers decreases demand.

Accepted Answer

A) True 
 B)False

Question 10

Figure 6-21 
-Refer to Figure 6-21. The amount of the tax per unit is

Accepted Answer

A)  $1.
B)  $1.50.
C)  $2.
D)  $3.E) All of the above
F) A) and B)

Question 11

Figure 6-20 
-Refer to Figure 6-20. The price paid by buyers after the tax is imposed is

Accepted Answer

A)  $24.
B)  $21.
C)  $18.
D)  $16.E) C) and D)
F) B) and D)

Question 12

How does elasticity affect the burden of a tax? Justify your answer using supply and demand diagrams.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> The tax burden fall...

Question 13

Figure 6-4 
-Refer to Figure 6-4. A government-imposed price of $16 in this market could be an example of a (i) 
Binding price ceiling.(ii) 
Non-binding price ceiling.(iii) 
Binding price floor.(iv) 
Non-binding price floor.

Accepted Answer

A)  (i)  only
B)  (ii)  only
C)  (i)  and (iv)  only
D)  (ii)  and (iii)  onlyE) None of the above
F) B) and C)

Question 14

A price floor will be binding only if it is set

Accepted Answer

A)  equal to the equilibrium price.
B)  above the equilibrium price.
C)  below the equilibrium price.
D)  either above or below the equilibrium price.E) A) and B)
F) None of the above

Question 15

Suppose that a tax is placed on books. If the buyers pay the majority of the tax, then we know that the

Accepted Answer

A)  demand is more inelastic than the supply.
B)  supply is more inelastic than the demand.
C)  government has required that buyers remit the tax payments.
D)  government has required that sellers remit the tax payments.E) C) and D)
F) None of the above

Question 16

Under rent control, bribery is a mechanism to

Accepted Answer

A)  bring the total price of an apartment (including the bribe)  closer to the equilibrium price.
B)  allocate housing to the poorest individuals in the market.
C)  force the total price of an apartment (including the bribe)  to be less than the market price.
D)  allocate housing to the most deserving tenants.E) A) and D)
F) B) and C)

Question 17

Studies by economists have found that a 10 percent increase in the minimum wage decreases teenage employment 10 percent.

Accepted Answer

A) True 
 B)False

Question 18

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.E) None of the above
F) B) and D)

Question 19

The mayor of Workerville proposes a local payroll tax to fund a new water park for the city. The mayor proposes to collect half the tax from workers and half the tax from firms. Workers will bear

Accepted Answer

A)  an equal share of the tax in comparison to firms.
B)  a greater share of the tax in comparison to firms.
C)  a smaller share of the tax in comparison to firms.
D)  All of the above are possible.E) All of the above
F) B) and C)

Question 20

To say that a price ceiling is nonbinding is to say that the price ceiling

Accepted Answer

A)  results in a surplus.
B)  is set above the equilibrium price.
C)  causes quantity demanded to exceed quantity supplied.
D)  All of the above are correct.E) None of the above
F) A) and B)

Exam 6: Supply, Demand, and Government Policies

Figure 6-2 -Refer to Figure 6-2. The price ceiling

Correct Answer
verified

Correct Answer
verified

Figure 6-21 -Refer to Figure 6-21. The amount of the tax per unit is

Correct Answer
verified

Under rent control, bribery is a mechanism to

Correct Answer
verified

Figure 6-20 -Refer to Figure 6-20. The price paid by buyers after the tax is imposed is

Correct Answer
verified

Price ceilings are typically imposed to benefit sellers.

Correct Answer
verified

One common example of a price floor is the minimum wage.

Correct Answer
verified

A tax imposed on the sellers of a good will

Correct Answer
verified

The goal of rent control is to help the poor by making housing more affordable.

Correct Answer
verified

How does elasticity affect the burden of a tax? Justify your answer using supply and demand diagrams.

Correct Answer
verified
The tax burden fall...
View Answer

An outcome that can result from either a price ceiling or a price floor is

Correct Answer
verified

When a tax is placed on the sellers of cell phones, the size of the cell phone market

Correct Answer
verified

The mayor of Workerville proposes a local payroll tax to fund a new water park for the city. The mayor proposes to collect half the tax from workers and half the tax from firms. Workers will bear

Correct Answer
verified

Figure 6-4 -Refer to Figure 6-4. A government-imposed price of $16 in this market could be an example of a (i) Binding price ceiling.(ii) Non-binding price ceiling.(iii) Binding price floor.(iv) Non-binding price floor.

Correct Answer
verified

Suppose that a tax is placed on books. If the buyers pay the majority of the tax, then we know that the

Correct Answer
verified

To say that a price ceiling is nonbinding is to say that the price ceiling

Correct Answer
verified

A tax on buyers decreases demand.

Correct Answer
verified

A price floor will be binding only if it is set

Correct Answer
verified

The minimum wage has its greatest impact on the market for

Correct Answer
verified

Studies by economists have found that a 10 percent increase in the minimum wage decreases teenage employment 10 percent.

Correct Answer
verified

Exam 6: Supply, Demand, and Government Policies

Figure 6-2 -Refer to Figure 6-2. The price ceiling

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 6-21 -Refer to Figure 6-21. The amount of the tax per unit is

Correct AnswerverifiedShow Answer

Under rent control, bribery is a mechanism to

Correct AnswerverifiedShow Answer

Figure 6-20 -Refer to Figure 6-20. The price paid by buyers after the tax is imposed is

Correct AnswerverifiedShow Answer

Price ceilings are typically imposed to benefit sellers.

Correct AnswerverifiedShow Answer

One common example of a price floor is the minimum wage.

Correct AnswerverifiedShow Answer

A tax imposed on the sellers of a good will

Correct AnswerverifiedShow Answer

The goal of rent control is to help the poor by making housing more affordable.

Correct AnswerverifiedShow Answer

How does elasticity affect the burden of a tax? Justify your answer using supply and demand diagrams.

Correct Answerverified The tax burden fall...View AnswerShow Answer

An outcome that can result from either a price ceiling or a price floor is

Correct AnswerverifiedShow Answer

When a tax is placed on the sellers of cell phones, the size of the cell phone market

Correct AnswerverifiedShow Answer

The mayor of Workerville proposes a local payroll tax to fund a new water park for the city. The mayor proposes to collect half the tax from workers and half the tax from firms. Workers will bear

Correct AnswerverifiedShow Answer

Figure 6-4 -Refer to Figure 6-4. A government-imposed price of $16 in this market could be an example of a (i) Binding price ceiling.(ii) Non-binding price ceiling.(iii) Binding price floor.(iv) Non-binding price floor.

Correct AnswerverifiedShow Answer

Suppose that a tax is placed on books. If the buyers pay the majority of the tax, then we know that the

Correct AnswerverifiedShow Answer

To say that a price ceiling is nonbinding is to say that the price ceiling

Correct AnswerverifiedShow Answer

A tax on buyers decreases demand.

Correct AnswerverifiedShow Answer

A price floor will be binding only if it is set

Correct AnswerverifiedShow Answer

The minimum wage has its greatest impact on the market for

Correct AnswerverifiedShow Answer

Studies by economists have found that a 10 percent increase in the minimum wage decreases teenage employment 10 percent.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The tax burden fall...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified