Question 1

A binding price ceiling may not help all consumers,but it does not hurt any consumers.

Accepted Answer

A) True 
 B)False

Question 2

A $0.50 tax levied on the buyers of pomegranate juice will shift the demand curve

Accepted Answer

A)   upward by exactly $0.50.
B)   upward by less than $0.50.
C)   downward by exactly $0.50.
D)   downward by less than $0.50.E) None of the above
F) A) and B)

Question 3

Minimum wage laws

Accepted Answer

A)   may encourage some teenagers to drop out and take jobs.
B)   create labor shortages.
C)   have the greatest impact in the market for skilled labor.
D)   All of the above are correct.E) None of the above
F) A) and B)

Question 4

Figure 6-15 
-Refer to Figure 6-15.Suppose a tax of $2 per unit is imposed on this market.How much will sellers receive per unit after the tax is imposed?

Accepted Answer

A)   $3
B)   between $3 and $5
C)   between $5 and $7
D)   $7E) B) and C)
F) A) and B)

Question 5

Table 6-1
 
-Refer to Table 6-1.Suppose the government imposes a price ceiling of $5 on this market.What will be the size of the shortage in this market?

Accepted Answer

A)   0 units
B)   2 units
C)   8 units
D)   10 unitsE) None of the above
F) A) and D)

Question 6

Long lines

Accepted Answer

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.E) A) and C)
F) A) and D)

Question 7

Figure 6-16 
-Refer to Figure 6-16.Suppose a tax of $5 per unit is imposed on this market.How much will sellers receive per unit after the tax is imposed?

Accepted Answer

A)   $5
B)   between $5 and $10
C)   between $10 and $14
D)   $14E) A) and B)
F) A) and C)

Question 8

The quantity sold in a market will decrease if the government decreases a

Accepted Answer

A)   binding price floor in that market.
B)   binding price ceiling in that market.
C)   tax on the good sold in that market.
D)   All of the above are correct.E) All of the above
F) A) and B)

Question 9

Which of the following statements is correct concerning the burden of a tax imposed on take-out food?

Accepted Answer

A)   Buyers bear the entire burden of the tax.
B)   Sellers bear the entire burden of the tax.
C)   Buyers and sellers share the burden of the tax.
D)   We have to know whether it is the buyers or the sellers that are required to pay the tax to the government in order to make this determination.E) All of the above
F) A) and B)

Question 10

Figure 6-21 
-Refer to Figure 6-22.How much tax revenue does this tax generate for the government?

Accepted Answer

A)   $150
B)   $180
C)   $250
D)   $300E) All of the above
F) B) and C)

Question 11

Table 6-3
The following table contains the demand schedule and supply schedule for a market for a particular good.Suppose sellers of the good successfully lobby Congress to impose a price floor $2 above the equilibrium price in this market.
 
-Refer to Table 6-3.Following the imposition of a price floor $2 above the equilibrium price,irate buyers convince Congress to repeal the price floor and to impose a price ceiling $1 below the former price floor.The resulting shortage is

Accepted Answer

A)   0 units.
B)   2 units.
C)   5 units.
D)   7 units.E) C) and D)
F) B) and D)

Question 12

If the government wants to reduce smoking,it should impose a tax on

Accepted Answer

A)   buyers of cigarettes.
B)   sellers of cigarettes.
C)   either buyers or sellers of cigarettes.
D)   whichever side of the market is less elastic.E) C) and D)
F) A) and D)

Question 13

Which of the following is not a result of rent control?

Accepted Answer

A)   fewer new apartments offered for rent
B)   less maintenance provided by landlords
C)   bribery
D)   higher quality housingE) B) and D)
F) B) and C)

Question 14

A price ceiling 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) C) and D)
F) B) and C)

Question 15

Price ceilings are typically imposed to benefit buyers.

Accepted Answer

A) True 
 B)False

Question 16

A binding minimum wage creates unemployment.

Accepted Answer

A) True 
 B)False

Question 17

If a price ceiling is not binding,then

Accepted Answer

A)   there will be a surplus in the market.
B)   there will be a shortage in the market.
C)   the market will be less efficient than it would be without the price ceiling.
D)   there will be no effect on the market price or quantity sold.E) A) and C)
F) A) and B)

Question 18

Figure 6-23 
-Refer to Figure 6-23.The per-unit burden of the tax is

Accepted Answer

A)   $4 for buyers and $6 for sellers.
B)   $5 for buyers and $5 for sellers.
C)   $6 for buyers and $4 for sellers.
D)   $10 for buyers and $0 for sellers.E) C) and D)
F) B) and D)

Question 19

When a binding price ceiling is imposed on a market to benefit buyers,

Accepted Answer

A)   every buyer in the market benefits.
B)   every buyer and seller in the market benefits.
C)   every buyer who wants to buy the good will be able to do so,but only if he waits in long lines.
D)   some buyers will not be able to buy any amount of the good.E) B) and C)
F) B) and D)

Question 20

If a price ceiling is not binding,then

Accepted Answer

A)   the equilibrium price is above the price ceiling.
B)   the equilibrium price is below the price ceiling.
C)   it has no legal enforcement mechanism.
D)   None of the above is correct because all price ceilings must be binding.E) A) and C)
F) A) and B)

Exam 6: Supply,demand,and Government Policies

Table 6-1 -Refer to Table 6-1.Suppose the government imposes a price ceiling of $5 on this market.What will be the size of the shortage in this market?

Correct Answer
verified

If the government wants to reduce smoking,it should impose a tax on

Correct Answer
verified

Long lines

Correct Answer
verified

When a binding price ceiling is imposed on a market to benefit buyers,

Correct Answer
verified

Minimum wage laws

Correct Answer
verified

If a price ceiling is not binding,then

Correct Answer
verified

The quantity sold in a market will decrease if the government decreases a

Correct Answer
verified

Which of the following is not a result of rent control?

Correct Answer
verified

Figure 6-16 -Refer to Figure 6-16.Suppose a tax of $5 per unit is imposed on this market.How much will sellers receive per unit after the tax is imposed?

Correct Answer
verified

Which of the following statements is correct concerning the burden of a tax imposed on take-out food?

Correct Answer
verified

Figure 6-21 -Refer to Figure 6-22.How much tax revenue does this tax generate for the government?

Correct Answer
verified

A price ceiling will be binding only if it is set

Correct Answer
verified

A binding minimum wage creates unemployment.

Correct Answer
verified

Price ceilings are typically imposed to benefit buyers.

Correct Answer
verified

Correct Answer
verified

A $0.50 tax levied on the buyers of pomegranate juice will shift the demand curve

Correct Answer
verified

Figure 6-23 -Refer to Figure 6-23.The per-unit burden of the tax is

Correct Answer
verified

A binding price ceiling may not help all consumers,but it does not hurt any consumers.

Correct Answer
verified

Figure 6-15 -Refer to Figure 6-15.Suppose a tax of $2 per unit is imposed on this market.How much will sellers receive per unit after the tax is imposed?

Correct Answer
verified

If a price ceiling is not binding,then

Correct Answer
verified

Exam 6: Supply,demand,and Government Policies

Table 6-1 -Refer to Table 6-1.Suppose the government imposes a price ceiling of $5 on this market.What will be the size of the shortage in this market?

Correct AnswerverifiedShow Answer

If the government wants to reduce smoking,it should impose a tax on

Correct AnswerverifiedShow Answer

Long lines

Correct AnswerverifiedShow Answer

When a binding price ceiling is imposed on a market to benefit buyers,

Correct AnswerverifiedShow Answer

Minimum wage laws

Correct AnswerverifiedShow Answer

If a price ceiling is not binding,then

Correct AnswerverifiedShow Answer

The quantity sold in a market will decrease if the government decreases a

Correct AnswerverifiedShow Answer

Which of the following is not a result of rent control?

Correct AnswerverifiedShow Answer

Figure 6-16 -Refer to Figure 6-16.Suppose a tax of $5 per unit is imposed on this market.How much will sellers receive per unit after the tax is imposed?

Correct AnswerverifiedShow Answer

Which of the following statements is correct concerning the burden of a tax imposed on take-out food?

Correct AnswerverifiedShow Answer

Figure 6-21 -Refer to Figure 6-22.How much tax revenue does this tax generate for the government?

Correct AnswerverifiedShow Answer

A price ceiling will be binding only if it is set

Correct AnswerverifiedShow Answer

A binding minimum wage creates unemployment.

Correct AnswerverifiedShow Answer

Price ceilings are typically imposed to benefit buyers.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A $0.50 tax levied on the buyers of pomegranate juice will shift the demand curve

Correct AnswerverifiedShow Answer

Figure 6-23 -Refer to Figure 6-23.The per-unit burden of the tax is

Correct AnswerverifiedShow Answer

A binding price ceiling may not help all consumers,but it does not hurt any consumers.

Correct AnswerverifiedShow Answer

Figure 6-15 -Refer to Figure 6-15.Suppose a tax of $2 per unit is imposed on this market.How much will sellers receive per unit after the tax is imposed?

Correct AnswerverifiedShow Answer

If a price ceiling is not binding,then

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

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