Question 1

If a tax is imposed on the sellers of a product,then the tax burden will fall entirely on the sellers.

Accepted Answer

A) True 
 B)False

Question 2

Figure 6-20 
-Refer to Figure 6-20.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) None of the above
F) B) and C)

Question 3

Figure 6-1
 
-Refer to Figure 6-1.In which panel(s) of the figure would there be a shortage of the good at the price ceiling?

Accepted Answer

A)   panel (a) only
B)   panel (b) only
C)   both panel (a) and panel (b) 
D)   neither panel (a) nor panel (b) E) A) and B)
F) None of the above

Question 4

Suppose the government wants to encourage Americans to exercise more,so it imposes a binding price ceiling on the market for in-home treadmills.As a result,

Accepted Answer

A)   the demand for treadmills will increase.
B)   the supply of treadmills will decrease.
C)   a shortage of treadmills will develop.
D)   All of the above are correct.E) A) and D)
F) A) and C)

Question 5

Figure 6-19 
-Refer to Figure 6-19.For every unit of the good that is sold,sellers are required to send

Accepted Answer

A)   one dollar to the government,and buyers are required to send two dollars to the government.
B)   two dollars to the government,and buyers are required to send one dollar to the government.
C)   three dollars to the government,and buyers are required to send nothing to the government.
D)   nothing to the government,and buyers are required to send two dollars to the government.E) All of the above
F) C) and D)

Question 6

The minimum wage has its greatest impact on the market for teenage labor.

Accepted Answer

A) True 
 B)False

Question 7

Figure 6-18 
-Refer to Figure 6-18.How much tax revenue does this tax generate for the government?

Accepted Answer

A)   $75
B)   $125
C)   $175
D)   $300E) B) and C)
F) C) and D)

Question 8

Figure 6-4 
-Refer to Figure 6-4.A government-imposed price of $12 in this market is an example of a

Accepted Answer

A)   binding price ceiling that creates a shortage.
B)   non-binding price ceiling that creates a shortage.
C)   binding price floor that creates a surplus.
D)   non-binding price floor that creates a surplus.E) All of the above
F) A) and C)

Question 9

Rent subsidies and wage subsidies are better than price controls at helping the poor because they have no costs associated with them.

Accepted Answer

A) True 
 B)False

Question 10

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) A) and B)
F) A) and C)

Question 11

If the government levies a $5 tax per ticket on buyers of NFL game tickets,then the price paid by buyers of NFL game tickets would

Accepted Answer

A)   increase by less than $5.
B)   increase by exactly $5.
C)   increase by more than $5.
D)   decrease by an indeterminate amount.E) C) and D)
F) B) and C)

Question 12

Table 6-4
The following table contains the demand schedule and supply schedule for a market for a particular good.Suppose sellers of the good successfully lobby Congress to impose a price floor $3 above the equilibrium price in this market.
 
-Refer to Table 6-4.Following the imposition of a price floor $3 above the equilibrium price,irate buyers convince Congress to repeal the price floor and to impose a price ceiling $1 below the former price floor.The resulting shortage is

Accepted Answer

A)   0 units.
B)   4 units.
C)   5 units.
D)   10 units.E) C) and D)
F) All of the above

Question 13

A price ceiling is always a binding price control,whereas a price floor may be either binding or not binding.

Accepted Answer

A) True 
 B)False

Question 14

A tax on sellers usually causes buyers to pay more for the good and sellers to receive less for the good than they did before the tax was levied.

Accepted Answer

A) True 
 B)False

Question 15

The term tax incidence refers to how the burden of a tax is distributed among the various people who make up the economy.

Accepted Answer

A) True 
 B)False

Question 16

Who bears the majority of a tax burden depends on whether the tax is placed on the buyers or the sellers.

Accepted Answer

A) True 
 B)False

Question 17

A tax of $1 on buyers shifts the demand curve downward by exactly $1.

Accepted Answer

A) True 
 B)False

Question 18

In the housing market,supply and demand are

Accepted Answer

A)   more elastic in the short run than in the long run,and so rent control leads to a larger shortage of apartments in the short run than in the long run.
B)   more elastic in the short run than in the long run,and so rent control leads to a larger shortage of apartments in the long run than in the short run.
C)   more elastic in the long run than in the short run,and so rent control leads to a larger shortage of apartments in the short run than in the long run.
D)   more elastic in the long run than in the short run,and so rent control leads to a larger shortage of apartments in the long run than in the short run.E) None of the above
F) B) and C)

Question 19

A price floor set below the equilibrium price causes a surplus in the market.

Accepted Answer

A) True 
 B)False

Question 20

In 2009,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 D)
F) C) and D)

Exam 6: Supply,demand,and Government Policies

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

Who bears the majority of a tax burden depends on whether the tax is placed on the buyers or the sellers.

Correct Answer
verified

Figure 6-19 -Refer to Figure 6-19.For every unit of the good that is sold,sellers are required to send

Correct Answer
verified

Figure 6-1 -Refer to Figure 6-1.In which panel(s) of the figure would there be a shortage of the good at the price ceiling?

Correct Answer
verified

Rent subsidies and wage subsidies are better than price controls at helping the poor because they have no costs associated with them.

Correct Answer
verified

If a tax is imposed on the sellers of a product,then the tax burden will fall entirely on the sellers.

Correct Answer
verified

If the government levies a $5 tax per ticket on buyers of NFL game tickets,then the price paid by buyers of NFL game tickets would

Correct Answer
verified

The term tax incidence refers to how the burden of a tax is distributed among the various people who make up the economy.

Correct Answer
verified

In the housing market,supply and demand are

Correct Answer
verified

A price floor set below the equilibrium price causes a surplus in the market.

Correct Answer
verified

A price ceiling is always a binding price control,whereas a price floor may be either binding or not binding.

Correct Answer
verified

Correct Answer
verified

Figure 6-4 -Refer to Figure 6-4.A government-imposed price of $12 in this market is an example of a

Correct Answer
verified

Figure 6-18 -Refer to Figure 6-18.How much tax revenue does this tax generate for the government?

Correct Answer
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A tax of $1 on buyers shifts the demand curve downward by exactly $1.

Correct Answer
verified

A tax on sellers usually causes buyers to pay more for the good and sellers to receive less for the good than they did before the tax was levied.

Correct Answer
verified

In 2009,the U.S.minimum wage according to federal law was

Correct Answer
verified

The minimum wage has its greatest impact on the market for teenage labor.

Correct Answer
verified

Suppose the government wants to encourage Americans to exercise more,so it imposes a binding price ceiling on the market for in-home treadmills.As a result,

Correct Answer
verified

The minimum wage was instituted to ensure workers

Correct Answer
verified

Exam 6: Supply,demand,and Government Policies

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

Who bears the majority of a tax burden depends on whether the tax is placed on the buyers or the sellers.

Correct AnswerverifiedShow Answer

Figure 6-19 -Refer to Figure 6-19.For every unit of the good that is sold,sellers are required to send

Correct AnswerverifiedShow Answer

Figure 6-1 -Refer to Figure 6-1.In which panel(s) of the figure would there be a shortage of the good at the price ceiling?

Correct AnswerverifiedShow Answer

Rent subsidies and wage subsidies are better than price controls at helping the poor because they have no costs associated with them.

Correct AnswerverifiedShow Answer

If a tax is imposed on the sellers of a product,then the tax burden will fall entirely on the sellers.

Correct AnswerverifiedShow Answer

If the government levies a $5 tax per ticket on buyers of NFL game tickets,then the price paid by buyers of NFL game tickets would

Correct AnswerverifiedShow Answer

The term tax incidence refers to how the burden of a tax is distributed among the various people who make up the economy.

Correct AnswerverifiedShow Answer

In the housing market,supply and demand are

Correct AnswerverifiedShow Answer

A price floor set below the equilibrium price causes a surplus in the market.

Correct AnswerverifiedShow Answer

A price ceiling is always a binding price control,whereas a price floor may be either binding or not binding.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 6-4 -Refer to Figure 6-4.A government-imposed price of $12 in this market is an example of a

Correct AnswerverifiedShow Answer

Figure 6-18 -Refer to Figure 6-18.How much tax revenue does this tax generate for the government?

Correct AnswerverifiedShow Answer

A tax of $1 on buyers shifts the demand curve downward by exactly $1.

Correct AnswerverifiedShow Answer

A tax on sellers usually causes buyers to pay more for the good and sellers to receive less for the good than they did before the tax was levied.

Correct AnswerverifiedShow Answer

In 2009,the U.S.minimum wage according to federal law was

Correct AnswerverifiedShow Answer

The minimum wage has its greatest impact on the market for teenage labor.

Correct AnswerverifiedShow Answer

Suppose the government wants to encourage Americans to exercise more,so it imposes a binding price ceiling on the market for in-home treadmills.As a result,

Correct AnswerverifiedShow Answer

The minimum wage was instituted to ensure workers

Correct AnswerverifiedShow Answer

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