Question 1

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

Accepted Answer

A)   no surplus.
B)   a surplus of 20 units.
C)   a surplus of 30 units.
D)   a surplus of 40 units.E) C) and D)
F) A) and D)

Question 2

Suppose that a tax is placed on books. If the sellers pay the majority of the tax, then we know that the

Accepted Answer

A)   demand is more inelastic than the supply.
B)   supply is more inelastic than the demand.
C)   government has required that buyers remit the tax payments.
D)   government has required that sellers remit the tax payments.E) A) and B)
F) A) and C)

Question 3

Figure 6-33 
-Refer to Figure 6-33. Suppose a $3 per-unit tax is imposed on the sellers of this good. What price will buyers pay for the good after the tax is imposed?

Accepted Answer

Buyers wil...

Question 4

When a binding price floor is imposed on a market,

Accepted Answer

A)   price no longer serves as a rationing device.
B)   the quantity demanded at the price floor exceeds the quantity that would have been demanded without the price floor.
C)   all sellers benefit.
D)   All of the above are correct.E) A) and D)
F) All of the above

Question 5

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) A) and B)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Table 6-5 
-Refer to Table 6-5. Which of the following price floors would be binding in this market?

Accepted Answer

A)   $3
B)   $6
C)   $9
D)   None of the above price floors would be binding.E) All of the above
F) B) and C)

Question 8

If the supply curve is more price elastic than the demand curve, will the buyers or the sellers bear a greater burden of a tax? Draw a diagram to illustrate your answer.

Accepted Answer

When the supply curve is more price elas...

Question 9

To say that a price floor is binding is to say that the price floor

Accepted Answer

A)   results in a shortage.
B)   is set below the equilibrium price.
C)   causes quantity supplied to exceed quantity demanded.
D)   All of the above are correct.E) A) and D)
F) B) and D)

Question 10

Figure 6-18
The vertical distance between points A and B represents the tax in the market. 
-Refer to Figure 6-18. The effective price that sellers receive after the tax is imposed is

Accepted Answer

A)   $6.
B)   $10.
C)   $16.
D)   $24.E) A) and B)
F) C) and D)

Question 11

Table 6-1 
-Refer to Table 6-1. Suppose the government imposes a price ceiling of $40 on this market. What will be the size of the shortage in this market?

Accepted Answer

A)   0 units
B)   400 units
C)   1200 units
D)   1600 unitsE) C) and D)
F) A) and B)

Question 12

The impact of the minimum wage depends on the skill and experience of the worker.

Accepted Answer

A) True 
 B)False

Question 13

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 sellers in this market?

Accepted Answer

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

Question 14

Which of the following is not correct? In a 2006 survey of Ph.D. economists,

Accepted Answer

A)   47 percent favored eliminating the minimum wage.
B)   14 percent would maintain the minimum wage at its current level.
C)   38 percent would increase the minimum wage.
D)   10 percent would decrease the minimum wage.E) A) and D)
F) A) and C)

Question 15

The minimum wage, if it is binding, lowers the incomes of

Accepted Answer

A)   no workers.
B)   only those workers who become unemployed.
C)   only those workers who have jobs.
D)   all workers.E) B) and D)
F) A) and D)

Question 16

Figure 6-36 
-Refer to Figure 6-36. If the government places a $2 tax in the market, the seller receives $6.

Accepted Answer

A) True 
 B)False

Question 17

Scenario 6-2
Suppose demand for a product is given by the equation  and supply for the product is given by the equation 
-Refer to Scenario 6-2. Suppose the government sets a price ceiling at $12 for this product. Is this price ceiling binding, and what will be the size of the shortage/surplus in this market?

Accepted Answer

The price ceiling wi...

Question 18

The tax incidence depends on whether the tax is levied on buyers or sellers.

Accepted Answer

A) True 
 B)False

Question 19

Figure 6-33 
-Refer to Figure 6-33. 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 20

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

Accepted Answer

A)   size of the market decreases.
B)   effective price received by sellers decreases, and the price paid by buyers increases.
C)   supply of the product decreases.
D)   All of the above are correct.E) C) and D)
F) All of the above

Exam 6: Supply, Demand, and Government Policies

If the supply curve is more price elastic than the demand curve, will the buyers or the sellers bear a greater burden of a tax? Draw a diagram to illustrate your answer.

Correct Answer
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When the supply curve is more price elas...
View Answer

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

Correct Answer
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To say that a price floor is binding is to say that the price floor

Correct Answer
verified

Figure 6-33 -Refer to Figure 6-33. Suppose a $3 per-unit tax is imposed on the sellers of this good. What price will buyers pay for the good after the tax is imposed?

Correct Answer
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Buyers wil...
View Answer

The impact of the minimum wage depends on the skill and experience of the worker.

Correct Answer
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The minimum wage, if it is binding, lowers the incomes of

Correct Answer
verified

Suppose that a tax is placed on books. If the sellers pay the majority of the tax, then we know that the

Correct Answer
verified

Table 6-5 -Refer to Table 6-5. Which of the following price floors would be binding in this market?

Correct Answer
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Table 6-1 -Refer to Table 6-1. Suppose the government imposes a price ceiling of $40 on this market. What will be the size of the shortage in this market?

Correct Answer
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The tax incidence depends on whether the tax is levied on buyers or sellers.

Correct Answer
verified

Which of the following is not correct? In a 2006 survey of Ph.D. economists,

Correct Answer
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A price ceiling set above the equilibrium price causes quantity demanded to exceed quantity supplied.

Correct Answer
verified

Correct Answer
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The price ceiling wi...
View Answer

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

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 sellers in this market?

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

Figure 6-36 -Refer to Figure 6-36. If the government places a $2 tax in the market, the seller receives $6.

Correct Answer
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Figure 6-33 -Refer to Figure 6-33. 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...
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Figure 6-18 The vertical distance between points A and B represents the tax in the market. -Refer to Figure 6-18. The effective price that sellers receive after the tax is imposed is

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

Correct Answer
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When a binding price floor is imposed on a market,

Correct Answer
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Exam 6: Supply, Demand, and Government Policies

If the supply curve is more price elastic than the demand curve, will the buyers or the sellers bear a greater burden of a tax? Draw a diagram to illustrate your answer.

Correct AnswerverifiedWhen the supply curve is more price elas...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

To say that a price floor is binding is to say that the price floor

Correct AnswerverifiedShow Answer

Figure 6-33 -Refer to Figure 6-33. Suppose a $3 per-unit tax is imposed on the sellers of this good. What price will buyers pay for the good after the tax is imposed?

Correct AnswerverifiedBuyers wil...View AnswerShow Answer

The impact of the minimum wage depends on the skill and experience of the worker.

Correct AnswerverifiedShow Answer

The minimum wage, if it is binding, lowers the incomes of

Correct AnswerverifiedShow Answer

Suppose that a tax is placed on books. If the sellers pay the majority of the tax, then we know that the

Correct AnswerverifiedShow Answer

Table 6-5 -Refer to Table 6-5. Which of the following price floors would be binding in this market?

Correct AnswerverifiedShow Answer

Table 6-1 -Refer to Table 6-1. Suppose the government imposes a price ceiling of $40 on this market. What will be the size of the shortage in this market?

Correct AnswerverifiedShow Answer

The tax incidence depends on whether the tax is levied on buyers or sellers.

Correct AnswerverifiedShow Answer

Which of the following is not correct? In a 2006 survey of Ph.D. economists,

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe price ceiling wi...View AnswerShow Answer

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

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 sellers in this market?

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

Figure 6-36 -Refer to Figure 6-36. If the government places a $2 tax in the market, the seller receives $6.

Correct AnswerverifiedShow Answer

Figure 6-33 -Refer to Figure 6-33. 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

Figure 6-18 The vertical distance between points A and B represents the tax in the market. -Refer to Figure 6-18. The effective price that sellers receive after the tax is imposed is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When a binding price floor is imposed on a market,

Correct AnswerverifiedShow Answer

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When the supply curve is more price elas...
View Answer

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Buyers wil...
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The price ceiling wi...
View Answer

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

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With a $4 per-unit t...
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