Question 1

A binding minimum wage raises the incomes of some workers, but it lowers the incomes of workers who cannot find jobs.

Accepted Answer

A) True 
 B)False

Question 2

Economists generally believe that rent control is

Accepted Answer

A)   an efficient and fair way to help the poor.
B)   inefficient but the best available means of solving a serious social problem.
C)   a highly inefficient way to help the poor raise their standard of living.
D)   an efficient way to allocate housing, but not a good way to help the poor.E) A) and B)
F) A) and C)

Question 3

Prices are inefficient rationing devices.

Accepted Answer

A) True 
 B)False

Question 4

A tax on the buyers of personal computer external hard drives encourages

Accepted Answer

A)   sellers to supply a smaller quantity at every price.
B)   buyers to demand a smaller quantity at every price.
C)   buyers to demand a larger quantity at every price.
D)   Both a)  and b)  are correct.E) A) and B)
F) B) and D)

Question 5

Figure 6-24 
-Refer to Figure 6-24. Suppose sellers, rather than buyers, were required to pay this tax in the same amount per unit as shown in the graph) . Relative to the tax on buyers, the tax on sellers would result in

Accepted Answer

A)   buyers bearing the same share of the tax burden.
B)   sellers bearing the same share of the tax burden.
C)   the same amount of tax revenue for the government.
D)   All of the above are correct.E) A) and C)
F) C) and D)

Question 6

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) A) and B)
F) None of the above

Question 7

Workers with high skills and much experience are not typically affected by the minimum wage.

Accepted Answer

A) True 
 B)False

Question 8

A price floor set above the equilibrium price causes quantity supplied to exceed quantity demanded.

Accepted Answer

A) True 
 B)False

Question 9

Figure 6-34 
-Refer to Figure 6-34. If the government imposes a tax of $6 per unit in this market, how much is the burden of the tax on the buyers in this market?

Accepted Answer

With a $6 tax per unit, the pr...

Question 10

Table 6-1
 
-Refer to Table 6-1. Suppose the government imposes a price floor of $70 on this market. What will be the size of the surplus in this market?

Accepted Answer

A)   0 units
B)   400 units
C)   600 units
D)   1000 unitsE) B) and D)
F) B) and C)

Question 11

Figure 6-6 
-Refer to Figure 6-6. If the government imposes a price ceiling of $6 on this market, then there will be

Accepted Answer

A)   no shortage.
B)   a shortage of 10 units.
C)   a shortage of 20 units.
D)   a shortage of 30 units.E) A) and B)
F) A) and C)

Question 12

When a tax is placed on the buyers of lemonade, the

Accepted Answer

A)   sellers bear the entire burden of the tax.
B)   buyers bear the entire burden of the tax.
C)   burden of the tax will be always be equally divided between the buyers and the sellers.
D)   burden of the tax will be shared by the buyers and the sellers, but the division of the burden is not always equal.E) A) and C)
F) B) and C)

Question 13

Figure 6-29
Suppose the government imposes a $2 on this market. 
-Refer to Figure 6-29. Suppose D1 represents the demand curve for gasoline in both the short run and long run, S1 represents the supply curve for gasoline in the short run, and S2 represents the supply curve for gasoline in the long run. After the imposition of the $2, the price paid by buyers will be

Accepted Answer

A)   higher in the long run than in the short run.
B)   higher in the short run than in the long run.
C)   equivalent in the short run and the long run.
D)   unable to be determined without additional information.E) A) and B)
F) All of the above

Question 14

A tax on sellers will shift the

Accepted Answer

A)   demand curve upward by the amount of the tax.
B)   demand curve downward by the amount of the tax.
C)   supply curve upward by the amount of the tax.
D)   supply curve downward by the amount of the tax.E) All of the above
F) A) and B)

Question 15

If the minimum wage exceeds the equilibrium wage, then

Accepted Answer

A)   the quantity demanded of labor will exceed the quantity supplied.
B)   the quantity supplied of labor will exceed the quantity demanded.
C)   the minimum wage will not be binding.
D)   there will be no unemployment.E) B) and C)
F) All of the above

Question 16

In 2012, the U.S. minimum wage according to federal law was

Accepted Answer

A)   $4.25 per hour.
B)   $5.15 per hour.
C)   $5.75 per hour.
D)   $7.25 per hour.E) B) and C)
F) B) and D)

Question 17

Figure 6-6 
-Refer to Figure 6-6. Which of the following price floors would be binding in this market?

Accepted Answer

A)   $6
B)   $8
C)   $10
D)   $4E) A) and C)
F) All of the above

Question 18

One common example of a price ceiling is rent control.

Accepted Answer

A) True 
 B)False

Question 19

Figure 6-13
This figure shows the market demand and market supply curves for good X. 
-Refer to Figure 6-13. Which of the following price ceilings would be binding in this market?

Accepted Answer

A)   $4
B)   $5
C)   $6
D)   $7E) A) and D)
F) A) and C)

Question 20

Price ceilings are typically imposed to benefit sellers.

Accepted Answer

A) True 
 B)False

Exam 6: Supply, Demand, and Government Policies

A tax on the buyers of personal computer external hard drives encourages

Correct Answer
verified

A binding minimum wage raises the incomes of some workers, but it lowers the incomes of workers who cannot find jobs.

Correct Answer
verified

Workers with high skills and much experience are not typically affected by the minimum wage.

Correct Answer
verified

Price ceilings are typically imposed to benefit sellers.

Correct Answer
verified

In 2012, the U.S. minimum wage according to federal law was

Correct Answer
verified

Table 6-1 -Refer to Table 6-1. Suppose the government imposes a price floor of $70 on this market. What will be the size of the surplus in this market?

Correct Answer
verified

Figure 6-13 This figure shows the market demand and market supply curves for good X. -Refer to Figure 6-13. Which of the following price ceilings would be binding in this market?

Correct Answer
verified

Figure 6-34 -Refer to Figure 6-34. If the government imposes a tax of $6 per unit in this market, how much is the burden of the tax on the buyers in this market?

Correct Answer
verified
With a $6 tax per unit, the pr...
View Answer

Figure 6-24 -Refer to Figure 6-24. Suppose sellers, rather than buyers, were required to pay this tax in the same amount per unit as shown in the graph) . Relative to the tax on buyers, the tax on sellers would result in

Correct Answer
verified

Figure 6-6 -Refer to Figure 6-6. Which of the following price floors would be binding in this market?

Correct Answer
verified

Economists generally believe that rent control is

Correct Answer
verified

Correct Answer
verified

A price floor set above the equilibrium price causes quantity supplied to exceed quantity demanded.

Correct Answer
verified

When a tax is placed on the buyers of lemonade, the

Correct Answer
verified

If the minimum wage exceeds the equilibrium wage, then

Correct Answer
verified

A tax imposed on the sellers of a good will

Correct Answer
verified

One common example of a price ceiling is rent control.

Correct Answer
verified

A tax on sellers will shift the

Correct Answer
verified

Prices are inefficient rationing devices.

Correct Answer
verified

Figure 6-6 -Refer to Figure 6-6. If the government imposes a price ceiling of $6 on this market, then there will be

Correct Answer
verified

Exam 6: Supply, Demand, and Government Policies

A tax on the buyers of personal computer external hard drives encourages

Correct AnswerverifiedShow Answer

A binding minimum wage raises the incomes of some workers, but it lowers the incomes of workers who cannot find jobs.

Correct AnswerverifiedShow Answer

Workers with high skills and much experience are not typically affected by the minimum wage.

Correct AnswerverifiedShow Answer

Price ceilings are typically imposed to benefit sellers.

Correct AnswerverifiedShow Answer

In 2012, the U.S. minimum wage according to federal law was

Correct AnswerverifiedShow Answer

Table 6-1 -Refer to Table 6-1. Suppose the government imposes a price floor of $70 on this market. What will be the size of the surplus in this market?

Correct AnswerverifiedShow Answer

Figure 6-13 This figure shows the market demand and market supply curves for good X. -Refer to Figure 6-13. Which of the following price ceilings would be binding in this market?

Correct AnswerverifiedShow Answer

Figure 6-34 -Refer to Figure 6-34. If the government imposes a tax of $6 per unit in this market, how much is the burden of the tax on the buyers in this market?

Correct AnswerverifiedWith a $6 tax per unit, the pr...View AnswerShow Answer

Figure 6-24 -Refer to Figure 6-24. Suppose sellers, rather than buyers, were required to pay this tax in the same amount per unit as shown in the graph) . Relative to the tax on buyers, the tax on sellers would result in

Correct AnswerverifiedShow Answer

Figure 6-6 -Refer to Figure 6-6. Which of the following price floors would be binding in this market?

Correct AnswerverifiedShow Answer

Economists generally believe that rent control is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A price floor set above the equilibrium price causes quantity supplied to exceed quantity demanded.

Correct AnswerverifiedShow Answer

When a tax is placed on the buyers of lemonade, the

Correct AnswerverifiedShow Answer

If the minimum wage exceeds the equilibrium wage, then

Correct AnswerverifiedShow Answer

A tax imposed on the sellers of a good will

Correct AnswerverifiedShow Answer

One common example of a price ceiling is rent control.

Correct AnswerverifiedShow Answer

A tax on sellers will shift the

Correct AnswerverifiedShow Answer

Prices are inefficient rationing devices.

Correct AnswerverifiedShow Answer

Figure 6-6 -Refer to Figure 6-6. If the government imposes a price ceiling of $6 on this market, then there will be

Correct AnswerverifiedShow Answer

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With a $6 tax per unit, the pr...
View Answer

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Correct Answer
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