Question 1

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 B)
F) A) and C)

Question 2

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

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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) B) and C)

Question 5

A tax on sellers shifts the supply curve but not the demand curve.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Figure 6-18 
-Refer to Figure 6-18. Sellers pay how much of the tax per unit?

Accepted Answer

A)  $1.00.
B)  $1.50.
C)  $2.50.
D)  $3.50.E) A) and B)
F) B) and D)

Question 8

You receive a paycheck from your employer, and your pay stub indicates that $300 was deducted to pay the FICA (Social Security/Medicare)  tax. Which of the following statements is correct?

Accepted Answer

A)  The $300 that you paid is not necessarily the true burden of the tax that falls on you, the employee.
B)  Your employer is required by law to pay $300 to match the $300 deducted from your check.
C)  This type of tax is an example of a payroll tax.
D)  All of the above are correct.E) A) and B)
F) All of the above

Question 9

Figure 6-7 
-Refer to Figure 6-7. Suppose a price ceiling of $5 is imposed on this market. As a result,

Accepted Answer

A)  the quantity of the good supplied decreases by 20 units.
B)  the demand curve shifts to the left so as to now pass through the point (quantity = 40, price = $5) .
C)  buyers' total expenditure on the good decreases by $100.
D)  the price of the good continues to serve as the rationing mechanism.E) A) and B)
F) A) and C)

Question 10

A tax of $1 on sellers shifts the supply curve upward by exactly $1.

Accepted Answer

A) True 
 B)False

Question 11

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 12

Lawmakers designed the burden of the FICA payroll tax to be split evenly between workers and firms. Labor economists believe that

Accepted Answer

A)  lawmakers may have actually achieved their goal because statistics show that the tax burden is currently equally divided.
B)  the tax raises too little revenue for the government, so it should be eliminated.
C)  firms bear most of the burden of the tax.
D)  workers bear most of the burden of the tax.E) B) and D)
F) A) and D)

Question 13

Figure 6-15 
-Refer to Figure 6-15. Suppose a tax of $2 per unit is imposed on this market. How much will sellers receive per unit after the tax is imposed?

Accepted Answer

A)  $3
B)  between $3 and $5
C)  between $5 and $7
D)  $7E) A) and B)
F) All of the above

Question 14

When a binding price ceiling is imposed on a market,

Accepted Answer

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

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Suppose the government imposes a 50-cent tax on the sellers of packets of chewing gum. The tax would

Accepted Answer

A)  shift the supply curve upward by less than 50 cents.
B)  raise the equilibrium price by 50 cents.
C)  create a 50-cent tax burden each for buyers and sellers.
D)  discourage market activity.E) A) and D)
F) All of the above

Question 17

Table 6-2
   Price  Quantity  Denanded  Quantity  Sugplied $102500$520075$10150150$15100225$2050300$250375\begin{array} { | c | c | c | } \hline 	ext { Price } & \begin{array} { c } 	ext { Quantity } \	ext { Denanded }\end{array} & \begin{array} { c } 	ext { Quantity } \	ext { Sugplied }\end{array} \\hline \$ 10 & 250 & 0\\hline \$ 5 & 200 & 75 \\hline \$ 10 & 150 & 150 \\hline \$ 15 & 100 & 225 \\hline \$ 20 & 50 & 300 \\hline \$ 25 & 0 & 375 \\hline\end{array} Price $10$5$10$15$20$25​ Quantity  Denanded ​250200150100500​ Quantity  Sugplied ​075150225300375​​ 
-Refer to Table 6-2. A price floor set at $20 will

Accepted Answer

A)  be binding and will result in a surplus of 50 units.
B)  be binding and will result in a surplus of 100 units.
C)  be binding and will result in a surplus of 250 units.
D)  not be binding. E) None of the above
F) B) and C)

Question 18

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 D)
F) None of the above

Question 19

Suppose the equilibrium price of a tube of toothpaste is $2, and the government imposes a price floor of $3 per tube. As a result of the price floor, the

Accepted Answer

A)  demand curve for toothpaste shifts to the left.
B)  supply curve for toothpaste shifts to the right.
C)  quantity demanded of toothpaste decreases, and the quantity of toothpaste that firms want to supply increases.
D)  quantity supplied of toothpaste stays the same.E) B) and C)
F) C) and D)

Question 20

A binding minimum wage

Accepted Answer

A)  alters both the quantity demanded and quantity supplied of labor.
B)  affects only the quantity of labor demanded; it does not affect the quantity of labor supplied.
C)  has no effect on the quantity of labor demanded or the quantity of labor supplied.
D)  causes only temporary unemployment because the market will adjust and eliminate any temporary surplus of workers.E) C) and D)
F) B) and D)

Exam 6: Supply, Demand, and Government Policies

Figure 6-7 -Refer to Figure 6-7. Suppose a price ceiling of $5 is imposed on this market. As a result,

Correct Answer
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Figure 6-18 -Refer to Figure 6-18. Sellers pay how much of the tax per unit?

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

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

Correct Answer
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A tax of $1 on sellers shifts the supply curve upward by exactly $1.

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

Correct Answer
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You receive a paycheck from your employer, and your pay stub indicates that $300 was deducted to pay the FICA (Social Security/Medicare) tax. Which of the following statements is correct?

Correct Answer
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A binding minimum wage

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

Correct Answer
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Suppose the government imposes a 50-cent tax on the sellers of packets of chewing gum. The tax would

Correct Answer
verified

Lawmakers designed the burden of the FICA payroll tax to be split evenly between workers and firms. Labor economists believe that

Correct Answer
verified

Suppose the equilibrium price of a tube of toothpaste is $2, and the government imposes a price floor of $3 per tube. As a result of the price floor, the

Correct Answer
verified

Correct Answer
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Figure 6-15 -Refer to Figure 6-15. Suppose a tax of $2 per unit is imposed on this market. How much will sellers receive per unit after the tax is imposed?

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

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

Correct Answer
verified

A tax on sellers shifts the supply curve but not the demand curve.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Exam 6: Supply, Demand, and Government Policies

Figure 6-7 -Refer to Figure 6-7. Suppose a price ceiling of $5 is imposed on this market. As a result,

Correct AnswerverifiedShow Answer

Figure 6-18 -Refer to Figure 6-18. Sellers pay how much of the tax per unit?

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

When a binding price floor is imposed on a market,

Correct AnswerverifiedShow Answer

A tax of $1 on sellers shifts the supply curve upward by exactly $1.

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

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

Correct AnswerverifiedShow Answer

You receive a paycheck from your employer, and your pay stub indicates that $300 was deducted to pay the FICA (Social Security/Medicare) tax. Which of the following statements is correct?

Correct AnswerverifiedShow Answer

A binding minimum wage

Correct AnswerverifiedShow Answer

When a binding price ceiling is imposed on a market,

Correct AnswerverifiedShow Answer

Suppose the government imposes a 50-cent tax on the sellers of packets of chewing gum. The tax would

Correct AnswerverifiedShow Answer

Lawmakers designed the burden of the FICA payroll tax to be split evenly between workers and firms. Labor economists believe that

Correct AnswerverifiedShow Answer

Suppose the equilibrium price of a tube of toothpaste is $2, and the government imposes a price floor of $3 per tube. As a result of the price floor, the

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 6-15 -Refer to Figure 6-15. Suppose a tax of $2 per unit is imposed on this market. How much will sellers receive per unit after the tax is imposed?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A tax on sellers shifts the supply curve but not the demand curve.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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