Question 1

A tax on sellers and an increase in input prices affect the supply curve in the same way.

Accepted Answer

A) True 
 B)False

Question 2

Figure 6-18 
-Refer to Figure 6-18.The equilibrium price in the market before the tax is imposed is

Accepted Answer

A)   $3.50.
B)   $5.
C)   $6.
D)   $7.E) B) and C)
F) A) and B)

Question 3

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.

Accepted Answer

A) True 
 B)False

Question 4

If the government removes a binding price floor from a market,then the price received by sellers will

Accepted Answer

A)   decrease,and the quantity sold in the market will decrease.
B)   decrease,and the quantity sold in the market will increase.
C)   increase,and the quantity sold in the market will decrease.
D)   increase,and the quantity sold in the market will increase.E) B) and D)
F) C) and D)

Question 5

Figure 6-23 
-Refer to Figure 6-23.The effective price received by sellers after the tax is imposed is

Accepted Answer

A)   $8.
B)   $10.
C)   $14.
D)   $18.E) B) and C)
F) C) and D)

Question 6

A tax imposed on the buyers of a good will lower the

Accepted Answer

A)   price paid by buyers and lower the equilibrium quantity.
B)   price paid by buyers and raise the equilibrium quantity.
C)   effective price received by sellers and lower the equilibrium quantity.
D)   effective price received by sellers and raise the equilibrium quantity.E) All of the above
F) B) and D)

Question 7

Figure 6-20 
-Refer to Figure 6-20.Which of the following statements is correct?

Accepted Answer

A)   The amount of the tax per unit is $6.
B)   The tax leaves the size of the market unchanged.
C)   The tax is levied on buyers of the good,rather than on sellers.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 8

Table 6-4
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 $3 above the equilibrium price in this market.
 
-Refer to Table 6-4.How many units of the good are sold after the imposition of the price floor?

Accepted Answer

A)   3
B)   9
C)   15
D)   18E) C) and D)
F) B) and D)

Question 9

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

Accepted Answer

A)   every seller in the market benefits.
B)   all buyers and sellers benefit.
C)   every seller who wants to sell the good will be able to do so,but only if he appeals to the personal biases of the buyers.
D)   some sellers will not be able to sell any amount of the good.E) None of the above
F) A) and D)

Question 10

A tax on buyers increases the size of a market.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)   no price ceiling on gasoline.
B)   a nonbinding price ceiling on gasoline.
C)   a binding price ceiling on gasoline.
D)   a nonbinding price floor on gasoline.E) All of the above
F) A) and B)

Question 12

A price floor set above the equilibrium price is binding.

Accepted Answer

A) True 
 B)False

Question 13

When a tax is levied on buyers of tea,

Accepted Answer

A)   buyers of tea and sellers of tea both are made worse off.
B)   buyers of tea are made worse off,and the well-being of sellers is unaffected.
C)   buyers of tea are made worse off,and sellers of tea are made better off.
D)   the well-being of both buyers of tea and sellers of tea is unaffected.E) B) and C)
F) A) and B)

Question 14

Figure 6-18 
-Refer to Figure 6-18.The effective price sellers receive after the tax is imposed is

Accepted Answer

A)   $2.50.
B)   $3.50.
C)   $5.00.
D)   $6.00.E) None of the above
F) B) and D)

Question 15

Using a supply and demand diagram,show a labor market with a binding minimum wage.Use the diagram to show those who are helped by the minimum wage and those who are hurt by the minimum wage.

Accepted Answer

a. For this example,a $300 price ceiling...

Question 16

A tax on sellers shifts the supply curve to the left.

Accepted Answer

A) True 
 B)False

Question 17

A tax levied on the sellers of blueberries

Accepted Answer

A)   increases sellers' costs,reduces profits,and shifts the supply curve up.
B)   increases sellers' costs,reduces profits,and shifts the supply curve down.
C)   decreases sellers' costs,increases profits,and shifts the supply curve up.
D)   decreases sellers' costs,increases profits,and shifts the supply curve down.E) A) and B)
F) A) and C)

Question 18

Figure 6-8 
-Refer to Figure 6-8.The price of the good would continue to serve as the rationing mechanism if

Accepted Answer

A)   a price ceiling of $4 is imposed.
B)   a price ceiling of $5 is imposed.
C)   a price floor of $3 is imposed.
D)   All of the above are correct.E) B) and D)
F) A) and B)

Question 19

Workers,rather than firms,bear most of the burden of the payroll tax.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not a rationing mechanism used by landlords in cities with rent control?

Accepted Answer

A)   waiting lists
B)   race
C)   price
D)   bribesE) A) and C)
F) All of the above

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.

Correct Answer
verified

Figure 6-18 -Refer to Figure 6-18.The effective price sellers receive after the tax is imposed is

Correct Answer
verified

Which of the following is not a rationing mechanism used by landlords in cities with rent control?

Correct Answer
verified

Figure 6-18 -Refer to Figure 6-18.The equilibrium price in the market before the tax is imposed is

Correct Answer
verified

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

Correct Answer
verified

A tax on buyers increases the size of a market.

Correct Answer
verified

Correct Answer
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Figure 6-23 -Refer to Figure 6-23.The effective price received by sellers after the tax is imposed is

Correct Answer
verified

When a tax is levied on buyers of tea,

Correct Answer
verified

Using a supply and demand diagram,show a labor market with a binding minimum wage.Use the diagram to show those who are helped by the minimum wage and those who are hurt by the minimum wage.

Correct Answer
verified
a. For this example,a $300 price ceiling...
View Answer

If the government removes a binding price floor from a market,then the price received by sellers will

Correct Answer
verified

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

Correct Answer
verified

A tax levied on the sellers of blueberries

Correct Answer
verified

Figure 6-8 -Refer to Figure 6-8.The price of the good would continue to serve as the rationing mechanism if

Correct Answer
verified

A tax on sellers shifts the supply curve to the left.

Correct Answer
verified

A price floor set above the equilibrium price is binding.

Correct Answer
verified

A tax imposed on the buyers of a good will lower the

Correct Answer
verified

Workers,rather than firms,bear most of the burden of the payroll tax.

Correct Answer
verified

Figure 6-20 -Refer to Figure 6-20.Which of the following statements is correct?

Correct Answer
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A tax on sellers and an increase in input prices affect the supply curve in the same way.

Correct Answer
verified

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.

Correct AnswerverifiedShow Answer

Figure 6-18 -Refer to Figure 6-18.The effective price sellers receive after the tax is imposed is

Correct AnswerverifiedShow Answer

Which of the following is not a rationing mechanism used by landlords in cities with rent control?

Correct AnswerverifiedShow Answer

Figure 6-18 -Refer to Figure 6-18.The equilibrium price in the market before the tax is imposed is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A tax on buyers increases the size of a market.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 6-23 -Refer to Figure 6-23.The effective price received by sellers after the tax is imposed is

Correct AnswerverifiedShow Answer

When a tax is levied on buyers of tea,

Correct AnswerverifiedShow Answer

Using a supply and demand diagram,show a labor market with a binding minimum wage.Use the diagram to show those who are helped by the minimum wage and those who are hurt by the minimum wage.

Correct Answerverifieda. For this example,a $300 price ceiling...View AnswerShow Answer

If the government removes a binding price floor from a market,then the price received by sellers will

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A tax levied on the sellers of blueberries

Correct AnswerverifiedShow Answer

Figure 6-8 -Refer to Figure 6-8.The price of the good would continue to serve as the rationing mechanism if

Correct AnswerverifiedShow Answer

A tax on sellers shifts the supply curve to the left.

Correct AnswerverifiedShow Answer

A price floor set above the equilibrium price is binding.

Correct AnswerverifiedShow Answer

A tax imposed on the buyers of a good will lower the

Correct AnswerverifiedShow Answer

Workers,rather than firms,bear most of the burden of the payroll tax.

Correct AnswerverifiedShow Answer

Figure 6-20 -Refer to Figure 6-20.Which of the following statements is correct?

Correct AnswerverifiedShow Answer

A tax on sellers and an increase in input prices affect the supply curve in the same way.

Correct AnswerverifiedShow Answer

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a. For this example,a $300 price ceiling...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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