Question 1

A binding price ceiling causes a shortage in the market.

Accepted Answer

A) True 
 B)False

Question 2

A tax on sellers reduces the size of a market.

Accepted Answer

A) True 
 B)False

Question 3

A price ceiling set below the equilibrium price causes a shortage in the market.

Accepted Answer

A) True 
 B)False

Question 4

The price received by sellers in a market will increase if the government

Accepted Answer

A)   decreases a binding price floor in that market.
B)   increases a binding price ceiling in that market.
C)   increases a tax on the good sold in that market.
D)   imposes a binding price ceiling in that market.E) None of the above
F) B) and D)

Question 5

Economists blame the long lines at gasoline stations in the U.S.in the 1970s on

Accepted Answer

A)   U.S.government regulations pertaining to the price of gasoline.
B)   the Organization of Petroleum Exporting Countries (OPE
C)  .
C)   major oil companies operating in the U.S.
D)   consumers who bought gasoline frequently,even when their cars' gasoline tanks were nearly full.E) A) and B)
F) B) and C)

Question 6

A tax on buyers shifts the demand curve to the right.

Accepted Answer

A) True 
 B)False

Question 7

In which of these cases will the tax burden fall most heavily on buyers of the good?

Accepted Answer

A)   The demand curve is relatively steep and the supply curve is relatively flat.
B)   The demand curve is relatively flat and the supply curve is relatively steep.
C)   The demand curve and the supply curve are both relatively flat.
D)   The demand curve and the supply curve are both relatively steep.E) A) and C)
F) C) and D)

Question 8

If a tax is levied on the buyers of a product,then there will be a(n)

Accepted Answer

A)   downward shift of the supply curve.
B)   upward shift of the supply curve.
C)   movement up and to the right along the supply curve.
D)   movement down and to the left along the supply curve.E) A) and C)
F) A) and B)

Question 9

If a nonbinding price ceiling is imposed on a market,then

Accepted Answer

A)   the quantity sold in the market will decrease.
B)   the quantity sold in the market will stay the same.
C)   the price in the market will increase.
D)   the price in the market will decrease.E) All of the above
F) A) and C)

Question 10

The price paid by buyers in a market will decrease if the government

Accepted Answer

A)   increases a binding price floor in that market.
B)   increases a binding price ceiling in that market.
C)   decreases a tax on the good sold in that market.
D)   More than one of the above is correct.E) A) and B)
F) B) and C)

Question 11

A surplus results when

Accepted Answer

A)   a nonbinding price floor is imposed on a market.
B)   a nonbinding price floor is removed from a market.
C)   a binding price floor is imposed on a market.
D)   a binding price floor is removed from a market.E) C) and D)
F) None of the above

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Figure 6-11 
-Refer to Figure 6-11.Buyers pay how much of the tax per unit?

Accepted Answer

A)   $1.
B)   $1.50.
C)   $2.50.
D)   $3.50.E) None of the above
F) B) and D)

Question 14

A payroll tax is a

Accepted Answer

A)   fixed number of dollars that every firm must pay to the government for each worker that the firm hires.
B)   tax that each firm must pay to the government before the firm can hire workers and operate its business.
C)   tax on the wages that firms pay their workers.
D)   tax on all wages above the minimum wage.E) None of the above
F) All of the above

Question 15

If a price floor 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)   there will be no effect on the market price or quantity sold.
D)   the market will be less efficient than it would be without the price floor.E) C) and D)
F) B) and C)

Question 16

If a nonbinding price floor is imposed on a market,then

Accepted Answer

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

Question 17

In the housing market,rent control causes

Accepted Answer

A)   quantity supplied and quantity demanded to fall.
B)   quantity supplied to fall and quantity demanded to rise.
C)   quantity supplied to rise and quantity demanded to fall.
D)   quantity supplied and quantity demanded to rise.E) All of the above
F) B) and C)

Question 18

Whether a tax is levied on sellers or buyers,taxes encourage market activity.

Accepted Answer

A) True 
 B)False

Question 19

Binding price floors benefit sellers because they allow sellers to sell all the goods they want at a higher price.

Accepted Answer

A) True 
 B)False

Question 20

The minimum wage was instituted to ensure workers

Accepted Answer

A)   a middle-class standard of living.
B)   employment.
C)   a minimally adequate standard of living.
D)   unemployment compensation.E) B) and D)
F) C) and D)

Exam 6: Supply, Demand, and Government Policies

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

Correct AnswerverifiedShow Answer

Economists blame the long lines at gasoline stations in the U.S.in the 1970s on

Correct AnswerverifiedShow Answer

In the housing market,rent control causes

Correct AnswerverifiedShow Answer

A payroll tax is a

Correct AnswerverifiedShow Answer

If a price floor is not binding,then

Correct AnswerverifiedShow Answer

If a nonbinding price floor is imposed on a market,then

Correct AnswerverifiedShow Answer

A tax on buyers shifts the demand curve to the right.

Correct AnswerverifiedShow Answer

The price received by sellers in a market will increase if the government

Correct AnswerverifiedShow Answer

In which of these cases will the tax burden fall most heavily on buyers of the good?

Correct AnswerverifiedShow Answer

The price paid by buyers in a market will decrease if the government

Correct AnswerverifiedShow Answer

A surplus results when

Correct AnswerverifiedShow Answer

Figure 6-11 -Refer to Figure 6-11.Buyers pay how much of the tax per unit?

Correct AnswerverifiedShow Answer

A price ceiling set below the equilibrium price causes a shortage in the market.

Correct AnswerverifiedShow Answer

A binding price ceiling causes a shortage in the market.

Correct AnswerverifiedShow Answer

If a nonbinding price ceiling is imposed on a market,then

Correct AnswerverifiedShow Answer

The minimum wage was instituted to ensure workers

Correct AnswerverifiedShow Answer

If a tax is levied on the buyers of a product,then there will be a(n)

Correct AnswerverifiedShow Answer

Whether a tax is levied on sellers or buyers,taxes encourage market activity.

Correct AnswerverifiedShow Answer

Binding price floors benefit sellers because they allow sellers to sell all the goods they want at a higher price.

Correct AnswerverifiedShow Answer

A tax on sellers reduces the size of a market.

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