Question 1

A price floor set above the equilibrium price is binding.

Accepted Answer

A) True 
 B)False

Question 2

Prices are inefficient rationing devices.

Accepted Answer

A) True 
 B)False

Question 3

Regardless of whether a tax is levied on sellers or buyers, taxes discourage market activity.

Accepted Answer

A) True 
 B)False

Question 4

If the equilibrium wage is $4 per hour and the minimum wage is $5.15 per hour, then a shortage of labor will exist.

Accepted Answer

A) True 
 B)False

Question 5

Policymakers use taxes to raise revenue for public purposes and to influence market outcomes.

Accepted Answer

A) True 
 B)False

Question 6

When a tax is placed on the sellers of a product, buyers pay

Accepted Answer

A)  more, and sellers receive more than they did before the tax.
B)  more, and sellers receive less than they did before the tax.
C)  less, and sellers receive more than they did before the tax.
D)  less, and sellers receive less than they did before the tax.E) None of the above
F) All of the above

Question 7

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) C) and D)
F) B) and C)

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Figure 6-14
 1, and the supply is S1. B) D2, and the supply is S1. C) D1, and the supply is S2. D) D2, and the supply is S2." class="answers-bank-image d-inline" rel="preload" > ​
-Refer to Figure 6-14. The buyers will bear the highest share of the tax burden compared to sellers if the demand is

Accepted Answer

A)  D1, and the supply is S1.
B)  D2, and the supply is S1.
C)  D1, and the supply is S2.
D)  D2, and the supply is S2.E) A) and B)
F) A) and C)

Question 10

Scenario 6-1
Suppose that demand in the market for good X is given by the equation
 $$Q ^ { D } = 30 - P$$ and that supply in the market for good X is given by the equation
 $$Q ^ { S } = 2 P$$
-Refer to Scenario 6-1. What are the equilibrium price and quantity in the market for good X?

Accepted Answer

The equilibrium pric...

Question 11

Figure 6-20
  ​
-Refer to Figure 6-20. Suppose a $4 per-unit tax is imposed on the sellers of this good. How many units of this good will be sold after the tax is imposed?

Accepted Answer

With a $4 per-unit t...

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

The burden of a luxury tax usually falls

Accepted Answer

A)  more on the rich than on the middle class.
B)  more on the poor than on the rich.
C)  more on the middle class than on the rich.
D)  equally on the rich, the middle class, and the poor.E) C) and D)
F) B) and D)

Question 14

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 ceilin...

Question 15

Rent control may lead to lower rents for those who find housing, but the quality of the housing may also be lower.

Accepted Answer

A) True 
 B)False

Question 16

When a binding price floor is imposed on a market for a good, some people who want to sell the good cannot do so.

Accepted Answer

A) True 
 B)False

Question 17

Minimum-wage laws are precise policy instruments that can specifically target workers whose family incomes are low.

Accepted Answer

A) True 
 B)False

Question 18

Rent control

Accepted Answer

A)  serves as an example of how a social problem can be alleviated or even solved by government policies.
B)  serves as an example of a price ceiling.
C)  is regarded by most economists as an efficient way of helping the poor.
D)  is the most efficient way to allocate scarce housing resources.E) C) and D)
F) A) and B)

Question 19

The true burden of a payroll tax has nothing to do with the percentage of the tax that employers are required to pay.

Accepted Answer

A) True 
 B)False

Question 20

Figure 6-12
  ​
​
-Refer to Figure 6-12. Suppose a tax of $84 per unit is imposed on this market. Which of the following is correct?

Accepted Answer

A)  Buyers and sellers will share the burden of the tax equally.
B)  Sellers will bear more of the burden of the tax than buyers will.
C)  Buyers will bear more of the burden of the tax than sellers will.
D)  There is no tax burden.E) A) and B)
F) A) and C)

Exam 6: Supply, Demand, and Government Policies

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

Correct AnswerverifiedShow Answer

Figure 6-20 ​ -Refer to Figure 6-20. Suppose a $4 per-unit tax is imposed on the sellers of this good. How many units of this good will be sold after the tax is imposed?

Correct AnswerverifiedWith a $4 per-unit t...View AnswerShow Answer

The burden of a luxury tax usually falls

Correct AnswerverifiedShow Answer

When a binding price floor is imposed on a market for a good, some people who want to sell the good cannot do so.

Correct AnswerverifiedShow Answer

When a tax is placed on the sellers of a product, buyers pay

Correct AnswerverifiedShow Answer

Figure 6-12 ​ ​ -Refer to Figure 6-12. Suppose a tax of $84 per unit is imposed on this market. Which of the following is correct?

Correct AnswerverifiedShow Answer

The true burden of a payroll tax has nothing to do with the percentage of the tax that employers are required to pay.

Correct AnswerverifiedShow Answer

Figure 6-14 ​ -Refer to Figure 6-14. The buyers will bear the highest share of the tax burden compared to sellers if the demand is

Correct AnswerverifiedShow Answer

Minimum-wage laws are precise policy instruments that can specifically target workers whose family incomes are low.

Correct AnswerverifiedShow Answer

Prices are inefficient rationing devices.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe equilibrium pric...View AnswerShow Answer

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

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 ceilin...View AnswerShow Answer

A price floor set above the equilibrium price is binding.

Correct AnswerverifiedShow Answer

Rent control may lead to lower rents for those who find housing, but the quality of the housing may also be lower.

Correct AnswerverifiedShow Answer

Policymakers use taxes to raise revenue for public purposes and to influence market outcomes.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Rent control

Correct AnswerverifiedShow Answer

Regardless of whether a tax is levied on sellers or buyers, taxes discourage market activity.

Correct AnswerverifiedShow Answer

If the equilibrium wage is $4 per hour and the minimum wage is $5.15 per hour, then a shortage of labor will exist.

Correct AnswerverifiedShow Answer

Correct Answer
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Figure 6-20 -Refer to Figure 6-20. Suppose a $4 per-unit tax is imposed on the sellers of this good. How many units of this good will be sold after the tax is imposed?

Correct Answer
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With a $4 per-unit t...
View Answer

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Figure 6-12 -Refer to Figure 6-12. Suppose a tax of $84 per unit is imposed on this market. Which of the following is correct?

Correct Answer
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Figure 6-14 -Refer to Figure 6-14. The buyers will bear the highest share of the tax burden compared to sellers if the demand is

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The equilibrium pric...
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a.
For this example, a $300 price ceilin...
View Answer

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